Seizure of cash, goods leaves bizmen worried

Coimbatore/Madurai/Trichy: A leading gold manufacturer in Trichy found himself in a tight spot recently when the Election Commission seized 1 kg gold from his company. The gold was legitimate but the trader did not possess documents to prove it was legitimate while transporting it.
Traders and industrialists across the state have expressed concern over the rising cases of money seizures after the model code of conduct kicked in on March 4.
As per the code of conduct, anybody carrying more than `50,000 in cash will have to possess documents to support the legitimacy of the cash. In many cases, businessmen ended up handing over the cash to the EC, and later retrieved it by submitting the necessary documents.
Industrialists in Coimbatore support the rule enforced by the EC to curb illegal transport of money and material to lure voters during the campaigning, but also say there is lack of clarity on the kind of documents they should possess while transporting goods or carrying cash. Coimbatore District Small Scale Industries Association president K Ponnuswamy said, “The Election Commission can list out the documents we should carry to prove the legitimacy of the cash. And, when it comes to goods, EC can mention specific documents with respect to gold, electronics, etc.“
Owners of small and micro industries also declared that paying salaries to daily and weekly wage labourers was becoming a problem.“There are many industries that pay weekly wages to their labourers, and the amount ranges from `25,000 to `1lakh.So, the `50,000 cap could be raised by the EC for industrialists alone,“ said the president of Kovai Power Driven Pumps and Spares Manufacturers Association, K Maniraj.
In Trichy , businessmen have been keeping track of the activities of the flying squad. “I have started maintaining an accounts book of the money that is borrowed and received. I try to restrict myself to transactions less than `50,000, and whenever the amount exceeds it, I hand over the cash to my relatives and friends, who keep it on rotation during business,“ K Illango, a vegetable dealer in Trichy's Gandhi Market said.
Southern districts too have witnessed seizures of large amounts in the last one week.But traders say that the ceiling limit should be raised to `2lakh, at least until the model code of conduct is in effect. On Tuesday , authorities in Madurai seized `10 lakh from a petrol bunk owner.While the man vouched for the cash, saying that it comprised his monthly earnings, he failed to prove it to the flying squad.
Authorities, on the other hand, said that they were suspicious because the currency was of `1,000 denomination with 100 notes in 10 bundles each. The money was not returned to the businessman.