Tirupati: The effect of demonetisation is becoming evident with various sectors of the state reporting shortage of revenue. The state government’s main resources generating departments like excise, stamps and registrations and vehicle registration have reported much lower collection. Sale of liquor from IMFL depots has come down by 10 to 20 per cent since the ban on big notes.
The depot linked to Tirupati excise district has sold 1.63 lakh cases in November where the sale was more than 1.7 lakh cases in October. So far in December, the sales continue a sharp decline which may lead to financial crisis for the state exchequer. A transaction by wine shop licensees from IMFL depots is through banks.
The steep drop in sales, however, was due to reduced demand at wine shops.
According to the owner of a wine shop in Puttur in the district, sales came down by 30 per cent in the past one month.
Construction workers and daily waged labour, who are the main consumers, do not have money because construction activities have been hit, he opined.
“Banks are not allowing us to deposit banned currency in current account from December 1 and asks us to deposit in SB account. So we have stopped accepting old notes from customers,” he said.
IMFL depot officials at Vadamalapet, which comes under Tirupati excise district, covering seven excise circles, Tirupati rural and urban, Srikalahast, Puttur, Satyavedu, Nagari and Pakala (part), confirmed that the sales have come down.
“There are about 210 wine shops under our depot limits. In October, more than 1.7 lakh cartons (all varieties of liquor) were lifted by wine shops. In November, especially after demonetisation announcement, however, sales came down to only 1.63 lakh cartons. For the last one week this month, sales were not up to the mark and may decrease further,” they said.
Meanwhile, land and house registrations have came down by 80 per cent. Several builders, who constructed apartments are in deep trouble with flats lying vacant because there are no takers. The situation is creating severe financial problems for builders many of whom have invested crores of rupees in the buildings borrowing money even from private financiers.
According to CREDAI Tirupati chapter president V. Srinivasulu, the sale of flats has stalled due to demonetisation. People are not ready to purchase them under the prevailing situation, where the money was also blocked in the banks. The construction sector faces another problem where many apartments under construction have seen a stop to the work.
Srinivasulu said the builders are not able to pay cash to construction workers with banks not allowing withdrawal of more than Rs 50,000 per week. “Purchase of materials like cement, steel etc can be done through NEFT transfer or online transaction. But most of the labour force does not have bank accounts for transferring their wages through online, we are unable to pay their wages, which is the reason for slow down of construction activities,” he said.
