Demonetisation apparently failed to force them to fulfil their obligation being a part of sector
A year after demonetisation situation is still grim as businessmen particularly builders and jewelers are on the verge of defaulting on loan and interest repayments.
The local financial market is in a tizzy after rumour of a handicraft businessman defaulting on loan repayment of Rs 585 crore even after a year. He said to have sought more time in a meeting held at his residence last Sunday.
Similarly, a jeweller on JLN Marg owes Rs 70 crore. There are reports that he settled dues by selling his property to the creditors at throwaway prices. But, not everyone is a gentleman as a builder said to have hired bouncers to keep lenders and brokers away. He reportedly owed Rs 150 crore.
Some other real estate developers who have business across the country and borrowed billions are unable to pay installments on time. Same goes for jewelers in C-Scheme, shyam Nagar, Bani Park, Vaishali Nagar and in the walled city. The jewelers are not even paying interest leave alone principal. A side effect of this crisis is that some jewelers are now resorting to cheating by selling synthetic colour stones in the name of real ones. One jeweller is now facing a police case. There was a time when these businessmen because of their goodwill used to get concession on the prevailing interest rates in the parallel financial market. Now, instead of getting fresh loans, they are being pressurized for repayment. The lenders are now putting pressure on the brokers for the recovery.
Those in the trade said that there is nothing lenders can do but to wait. Business is bound to get affected when money is squeezed out of circulation. The problem is that the situation has not normalized even a year after demonetisation. “Unless the property market improves there is no possibility for the creditors to get their money back,” a broker said.
There are at least 20 finance brokers operating without any registration in Jaipur.
Transaction trick
Entire money transaction is being done in cash and based on trust and verbal commitment. However, the business is kept away from prying eyes of income tax department. To avoid trouble from income tax department, the actual transaction is many times more than shown on the slip.
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