Tamil Nadu Businesses Appeal for Easing of Election Cash and Goods Transport Rules
With the Tamil Nadu assembly election rapidly approaching, a wave of apprehension has swept through the state's business community. Businessmen, traders, and farmers are expressing deep concerns that the enforcement of the model code of conduct (MCC) will soon impose stringent scrutiny on the movement of goods and cash, potentially disrupting daily operations and economic activities.
Trade Bodies and Jewellers Petition Election Commission
In response to these fears, various trade bodies and jewellers have urgently appealed to the Election Commission of India (ECI) to relax the existing rules pertaining to the transportation of cash. Under the election expenditure monitoring system, which was introduced around 2009–2010, flying squads and static surveillance teams are empowered to seize cash exceeding 50,000 rupees if it is transported without proper documentation. Additionally, goods carried without invoices are liable for confiscation. Cases involving cash amounts surpassing 10 lakh rupees are referred to the income tax department for further investigation, adding another layer of complexity for businesses.
Specific Grievances from the Jewellery Sector
Representatives of the Coimbatore jewellery manufacturers association recently petitioned Tamil Nadu chief electoral officer Archana Patnaik, seeking significant changes in the scrutiny process. G Venkatesh, the association's secretary, highlighted a critical issue: "Officials in flying squads are often unfamiliar with the intricacies of the jewellery trade. Even when we carry all necessary invoices and documents, our ornaments are frequently seized. It typically takes 7 to 10 days to retrieve them, by which time we lose valuable customers due to our inability to deliver finished products on schedule." To address this, jewellers have suggested that including income tax and GST officials in flying squads could help resolve such disputes, as these professionals are more familiar with business documentation and procedures.
Historical Context and Outdated Limits
Notably, during the 2024 Lok Sabha elections, authorities seized gold and silver ornaments worth over 1,000 crore rupees, underscoring the scale of enforcement. A district collector, who also serves as a district electoral officer, pointed out that the current limits on carrying cash were established nearly 15 years ago and have become outdated due to inflation and other economic factors. "We have received numerous representations from traders and businesspersons during grievance meetings and have escalated this issue to the appropriate levels for review," the official stated, emphasizing the need for updated regulations.
Broader Business Community Concerns
Tamil Nadu Traders Federation President A M Vikrama Raja has also flagged this issue, advocating that the ECI should permit traders to carry cash up to 2 lakh rupees without requiring extensive documentation. Meanwhile, S Sridharan, an executive committee member of Credai-National, warned that the model code of conduct could hinder ease of doing business. He expressed concerns that delays in issuing orders for ongoing or new projects might slow down the construction sector, potentially affecting employment for thousands of workers across the state.
Election Commission's Stance
Despite these appeals, Chief Election Commissioner Gyanesh Kumar, during his recent visit to Tamil Nadu, hinted that there are currently no proposals to change the existing rules. This stance has left many in the business community anxious about the upcoming election period, as they brace for potential disruptions to their operations and livelihoods.
