Demonetisation and GST script Kanpur coin crisis, but it is not what you think

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New Delhi | Published: November 5, 2017 2:14:53 PM

The traders had put up posters comparing Prime Minister Narendra Modi to North Korea dictator Kim Jong-Un because of the large amounts of money they had and which they could not get back into the banks.

demonetisation, gst, demonetisation kanpur traders, gst kanpur traders, demonetisation traders news, gst traders news, demonetisation coin problem, gst coin problem, demonetisation mann ki baat, gst mann ki baat, modi mann ki baatSoon after the announcement of demonetisation, banks were cash-strapped and there was a dearth of notes and banks even resorted to handing over coins to people to get over the currency crisis. This solution hit 22 traders from Kanpur. (Photo: IE)

Soon after the announcement of demonetisation, banks were cash-strapped and there was a dearth of notes and banks even resorted to handing over coins to people to get over the currency crisis. This solution hit 22 traders from Kanpur. Initially, they were happy to receive the coins. These traders faced problems only after the implementation of GST when larger payments were required to be made through real time gross settlement (RTGS). Now, these traders have been crushed between two poles – demonetisation and GST. The traders were looking for ways to seek help from the government, but now find themselves booked. Among these 22 traders, Ikhlaq Mirza is one such wholesale trader who has collected Rs 1.4 lakh in coins and is looking for ways to get rid of them without suffering a loss, reports Indian Express. Another trader Nikhil Gupta blames GST for the trouble as people refuse to accept payments above Rs 1,000 except currencies and do not accept coins at all.

The traders had put up posters comparing Prime Minister Narendra Modi to North Korea dictator Kim Jong-Un because of the large amounts of money they had and which they could not get back into the banks. They were quickly booked by the Kanpur police under section 505 (statements conducing to public mischief) and section 153 (wantonly giving provocation with intent to cause riot) of the Indian Penal Code (IPC) and the Up Special Powers Act. The posters put up by these 22 traders and signed by them read, ‘Modiji apne maan ki baat vyapari ko samjhaiye ki yeh rezgari hum kahan le jayen (Modi ji please tell us through your Mann Ki Baat where should we take these coins)’ and ‘Na bank le na bhikhari, rezgari le sirf vyapari (neither the banks nor the beggars, only traders collect coins)’.

Here are the details about two of these 22 traders:

Ikhlaq Mirza (37), wholesale dealer in small plastic items –

Mirza who has coins worth Rupees 1.4 lakh. While speaking on customers and other people refusing to accept Rs 10 coins, he said, “Bharat ki currency Bharat mein hi nahin chal rahi hai (India’s currency is defunct in India itself).”

Nikhil Gupta (40), wholesale supplier of confectionary –

Gupta has coins worth Rupees 1.5 lakh. Gupta is aware of the number of denominations he holds – Rs 60,000 in Re 1 and Rs 2 coins, and the rest in bigger denominations and says that in his 20 years of doing business he has never found himself in such distress.

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