Renowned businessman from Gujarat, Zafar Sareshwala believes that Muslims have benefited the most from demonetisation. “By default, the maximum advantage has gone to the Muslims, especially the Muslim business community,” he told The Sunday Guardian in an exclusive interview. He was asked if he had received any response from within the community about the effects of demonetisation. “There is no doubt that everybody is suffering a slowdown in business. Even I am suffering losses. I am unable to sell as many cars. But I know that next year, I will sell double,” he said.
Sareshwala was talking about the impact of demonetisation and its benefits. Asked if Muslim businessmen from his home-state Gujarat had approached him to talk about the impact of demonetisation on them, he replied in the affirmative.
“No doubt the business community has taken a hit. Demonetisation was like a heart surgery. It was a huge exercise. There were problems. Nobody could have imagined what problems could have come because it is a core economic growth issue. But the government has been sensitive to all problems. No economy can survive with such a huge amount of cash, if it doesn’t come in the banks. The cash to GDP ratio was more. Now, the money has come to the banks. There is a slowdown in business. Even I sold fewer cars this year. But I know I will sell double the next year. Let me also tell you, that by default, the maximum advantage of the demonetisation move has gone to Muslims,” he said.
“It is like a second lifeline to Muslims to get into the system. Muslim businessmen are typically not the ones who had Rs 5-10 crore cash. They had Rs 15-20 lakh cash. Those who came to me, I advised them to file returns on behalf of each member of the family. There would be five family members at least, on an average. Even if they paid advance tax for next year, they benefited. Now, hundreds of Muslims have got their PAN cards, Aadhar cards made. They have opened bank accounts. They have filed returns. The Income-Tax department will see this. Now the community businessmen will be able to show their balance sheets, and take the benefit of the government schemes for them. Until now, they were out of this net,” he said.
“They have to first get accounted to take benefit of the government schemes meant for them. These steps will increase their value and net worth. They will become a part of the system. I have also advised many Muslim traders to get POS machines installed in their set-ups. Trading and transactions will be easier. Many Muslims came to me. I told them to take advantage of this. We are also going to hold a number of seminars on financial literacy for Muslims. We will also target Muslim women and impart training to them,” he said.
But community leaders criticised Sareshwala for his comment, saying that the reverse was true. “If any community has suffered the most due to demonetisation, it is the Muslims,” said Nawab Malik, Nationalist Congress Party spokesperson.
“I request Zafar Sareshwala to accompany me to Muslim dominated areas. We will walk together and ask those Muslims standing in long queues. He will get his answers,” said Waris Pathan, who is MLA in Mumbai from Asaduddin Owaisi’s AIMIM.
Shehzad Poonawala from Congress said that the Muslim business community had suffered tremendously, and that nobody had benefited from demonetisation.
Waris Pathan said, “Everyone was busy standing in queues. Where was the time to open a bank account?” “There has been more trouble for Muslims because they do not have bank accounts. There are very few banks in the marginalised areas. According to empirical data, the World Bank report, the 2011 Census report and the many committee reports, Muslims are the most marginalised community. After demonetisation, people in the marginalised areas have suffered the most,” he said.
Shehzad Poonawala said that Muslims formed the largest chunk of the unorganised sector in the country. “Zafar Sareshwala cannot have one or two anecdotes to talk about the entire community. The Muslim business community has suffered too. The economy has slowed down. People are not hiring many people. Daily wage earners are sitting without jobs because 80% spending has gone down,” he claimed.
NCP leader Nawab Malik asked if Sareshwala meant to say that Muslim businessmen were not paying their income taxes earlier. “Does he mean to say that the small and large businessmen did not pay their Income Tax earlier? Many Muslims have been filing their returns regularly,” he said.
He said that most farmers who had fruit farms, were Muslims. “The traders who buy fruits and vegetables, too, are mainly Muslims. When the trucks are not plying due to demonetisation, how can these traders benefit? 90% of textile workers in the unorganised sector are Muslims. They are jobless today. Zafar Sareshwala is a businessman who is not aware of the ground reality,” Malik said.