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Mumbai loses Rs. 700 crores in 10 days

Business establishments incur heavy losses in the city after demonetisation.

Bengaluru: People queue up in front of an ATM kiosks in Bengaluru on Nov. 11, 2016. ATMs were reopened after two days and started disbursing new series of Rs 500 and Rs 2,000 currency notes. (Photo: IANS)

The Modi government’s ambitious demonetisation drive has not only affected the common man but even businessmen too are incurring heavy losses. Ever since the PM made a shocking announcement about scrapping of Rs 500 and Rs 1,000 there has been a 50 to 60 per cent drop in business activities in the city. Industries that have been severely hit include hotels, realty sector, jewellery, garment and entertainment. People have postponed their buying decisions due to shortage of money. Even though ten days have passed ever since the government had scrapped high denomination notes but businesses are not running smoothly due to decline in transactions. Shopping malls and multiplexes are incurring huge losses due to lower customer footfalls. There has been a 50 per cent drop in registration of properties across the city. According to an estimate, the losses businesses in Mumbai have incurred since November 9 stand at an estimated Rs 700 crore.

“Earlier atleast 30 to 40 customers used to visit my shop to inquire about rental properties. After demonetisation hardly three to four people turn up. The government should have made alternative arrangements before going ahead with such a huge step,” said Sumit Shah a broker from Borivali.

“Prior to demonetisation, I used to earn Rs 20,000 to Rs 25,000 thousand daily. But now my daily earnings have dropped to Rs 5,000. There is severe liquidity crunch in the market and hence people are worried about spending their money. We had voted for the Modi government as he had promised to bring achche din for us but today the nation is undergoing financial emergency,” said Viral Sanghvi a garment shop owner from Borivali.

“Today it has become difficult for a common man to enter banks and conduct transactions like, cheque deposit, cash withdrawals, fund transfers, opening fixed deposit as cash deposit and currency replacement activities has taken centre stage. Many customers are being prohibited from entering banks by guards as they consider them to be creating a hindrance for those who are standing in queue to exchange their money,” said a money lender from Kandivali on the condition of anonymity.

Traders at Navi Mumbai’s Agricultural Produce Marketing Corporation (APMC) have also reported 50 per cent drop in business after government’s decision to fight black money.

The Indian Hotels and Restaurant Association (AHAR) said that the industry that generates Rs 32,000 crore per annum has witnessed nearly 40 per cent less business in last 10 days.

“Restaurants in Mumbai generate around Rs 90 crore a day, but now it’s down to around half that. In the first few days following the demonetisation, it was around 60 per cent,” Adarsh Shetty, president, AHAR, said.

On the other hand, BJP has suffered a massive jolt due to demonetisation after it lost all 17 seats at the Panvel-based Agriculture Produce Market Committee (APMC) polls.

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