Cash collection is tricky, thanks to poll code

Hubballi: The model code of conduct has put many businessmen and traders in an unenviable spot towards the end of the financial year as it was a herculean task for them to collect pending balances from their clients or customers.
The model code guidelines impose restrictions on carrying of cash beyond a certain limit and without documents.

But, according to sources, many businessmen opted for non-cash transactions or have deferred their recovery from their clients or customers. A few others found another way out—they used public transport like buses or trains to carry the cash. The concentration of surveillance squads are only on cars or personal vehicles as no poll officer is currently checking trains or buses due to their own limitations like inadequate staff and shortage of time.

Speaking to TOI, Vasant Ladwa, former president, Karnataka Chamber of Commerce and Industry (KCCI), noted that many small-scale traders, particularly in retail sector, rely on cash transactions.

“According to provisions of I-T Act, businessman can carry the cash with receipts. But they suffered hurdles at check-posts where officials themselves were unaware about rules and regulations. Officials from police, education or other departments many a times fail to verify receipts and documents and they just seize the cash. Fortunately, such cases won’t stand in a court of law, where documents are verified thoroughly,” he said.

He also observed that many dealers and distributors turned into non-cash transactions to avoid unnecessary interruption by poll officials. “Wherever it is not possible, they have just deferred their plan of recovering pending balances,” he added.

Neelesh Ganagapur, an employee with an electrical goods dealer in Koppikar Road, said that he brought cash by lakh via public transport. “Many of our customers paid balances in cash as it has been difficult to deposit in banks. However, it was safe to travel by bus or train where no official checked our bags,” he said.

An official posted at a checkpost asserted that buses will be checked only after announcement of leading candidates in the constituency. “We were instructed to check buses during assembly elections only after completion of nomination,” he added.

Gangadhar Patil, a manager with a private finance, said he was bringing cash from his customers in his cars. “When the model code came into being, we decided to travel by trains or buses until officials start checking them,” he stated.