At least half of the daily business at the fuel outlets are cash transactions ranging between ₹2 lakh and ₹10 lakh.
| Photo Credit: KVS GIRI
Petroleum dealers of national oil marketing companies have appealed to the Election Commission of India (ECI) to permit the trade to deposit cash generated from daily sales without hindrance in bank.
“Seek permission to exempt us from the squads confiscating our hard earned money which if not deposited [in bank] will result in supplies getting blocked by the oil marketing companies,” Consortium of Indian Petroleum Dealers said in a letter to the Chief Election Commissioner on April 8.
Disruption in supplies would lead to dry outs at petrol bunks and cause severe inconvenience to consumers, President Uday Lodh and General Secretary K. Suresh Kumar said.
With the Model Code of Conduct in force, for the elections, the dealers are concerned as they are facing issues moving the cash generated from sales to the bank. At least half of the daily business at the fuel outlets are cash transactions ranging between ₹2 lakh and ₹10 lakh. “This amount is transferred by us every day to the bank and overnight to our homes, to ensure safety,” the CIPD leaders said.
“We need your intervention to provide us solutions to conduct trouble free business and a mechanism to permit our cash to be deposited in our respective banks,” they said.
Petroleum dealers, however, are not the only trade raising concerns with the Model Code coming in the way of cash deposits by them. Movement of cash without valid documents comes under scrutiny under the Code, though the complaint from businesses remain that despite production of documents the cash is seized.
Heightened scrutiny
The heightened scrutiny on the movement of gold and cash was also cited by World Gold Council Regional CEO-India Sachin Jain in a release on a likely uptick in consumer purchases on account of Gudi Padwa, Ugadi, Chaitra Navratri and Ramzan Eid.
Gold prices touching a historic high of ₹71,000 per 10 grams in the country had resulted in near stagnant jewellery demand in first quarter in both rural and urban centres as per feedback from jewellery retailers. “Hence, the start of current festive season with Gudi Padwa… in April, it should see an uptick in consumer purchases and drive the gold demand upwards. Past few days, industry has been reporting increased consumer interest and good prior bookings for festivals,” he said in a release on April 8.
Except during festivals, gold jewellery demand will likely remain subdued during large part of Q2, even if prices moderate over the coming months, he said, while also referring to how there will heightened scrutiny on movement of gold and cash on account of the general election.
“On the flip side, higher prices could encourage investment into gold-linked digital and investment products,” Mr.Jain said.
