Trade bodies want ECI to relax rule on cash movement

Chennai: With the assembly election fast approaching, businessmen, traders and farmers are apprehensive that the enforcement of the model code of conduct (MCC) will soon place movement of goods and cash under strict scrutiny.Trade bodies and jewellers have urged Election Commission of India (ECI) to relax rules pertaining to transportation of cash. Under the election expenditure monitoring system introduced around 2009–2010, flying squads and static surveillance teams are empowered to seize cash above 50,000 transported without proper documentation, while goods carried without invoices are liable for confiscation. Cases involving cash exceeding 10 lakh are referred to the income tax department for further investigation.Representatives of the Coimbatore jewellery manufacturers association petitioned Tamil Nadu chief electoral officer Archana Patnaik, seeking changes in the scrutiny process. "Officials in flying squads are often unfamiliar with the jewellery trade. Even when we carry invoices and documents, the ornaments are seized. It usually takes 7 to 10 days to get them back, by which time we lose customers for failing to deliver finished products on schedule," the association's secretary, G Venkatesh, said.Jewellers suggested that including income tax and GST officials in flying squads would help resolve such issues, as they are familiar with business documentation. Notably, during the 2024 Lok Sabha elections, authorities seized gold and silver ornaments worth over 1,000 crore. "The limits on carrying cash were fixed nearly 15 years ago and are outdated due to inflation and other factors. We received several representations from traders and businesspersons during grievance meetings and escalated the issue to the appropriate level," said a district collector, who is also a district electoral officer.Tamil Nadu Traders Federation President A M Vikrama Raja also flagged the issue and said the ECI should permit traders to carry cash up to 2 lakh without documents. S Sridharan, executive committee member of Credai-National, said the ECI should ensure ease of doing business during the MCC period, warning that delays in issuing orders for ongoing or new projects could slow the construction sector and affect employment for thousands of workers. Chief election commissioner Gyanesh Kumar, during his recent visit to TN, hinted that there were no proposals to change the rules.