Ayodhya Traders Witness Policy Shift After UP Lok Sabha Setback

After UP Lok Sabha setback, Yogi government’s big policy shift for Ayodhya traders

Battered in the just concluded Lok Sabha election where BJP even lost election in Faizabad (Ayodhya), the Yogi government has gone for course correction by changing its policy for Ayodhya traders from a business-first approach to prioritizing local interests.

Hundreds of shops between Faizabad and Ayodhya were demolished for the construction of the Ram Path. Initially, shopkeepers were required to pay Rs 20 to 25 lakh upfront to acquire new shops, a condition that many local traders could not meet. This policy effectively barred them from obtaining new shops due to the high cost imposed by the Ayodhya Development Authority.

Post election, the Yogi government announced a major policy shift to support local traders affected by the Ram Path project. The new policy allows displaced shopkeepers to acquire 500 newly constructed shops through interest-free, long-term installment plans.

The BJP won only 33 out of 80 seats in Uttar Pradesh, with the most surprising loss in Ayodhya, where BJP’s two-time MP Lallu Singh was defeated by Samajwadi Party’s Awdhesh Prasad. Despite emphasizing the construction of the Ram Mandir in its campaign, the BJP lost the Faizabad Lok Sabha seat, central to its temple politics, due to dissatisfaction among local shopkeepers who felt betrayed.

Many locals, whose shops were demolished for the Ram Path, expressed their dissatisfaction through their votes. This discontent was a major factor in BJP’s defeat in Ayodhya. Many traders and residents felt the compensation they received was grossly inadequate.

Pankaj Gupta, President of the Ayodhya Dham Vyapar Mandal, said:, “Our shops were demolished for the widening of the Ram Path, and we were given compensation that felt more like charity—merely Rs 1 or 2 lakh. As a protest, we closed our shops for two days, but no public representative or official addressed our grievances.”

Gupta also mentioned that before the 2022 assembly elections, then Deputy Chief Minister Dinesh Sharma assured traders they would receive new shops free of cost in exchange for the demolished ones. This promise led many to vote for Ved Prakash Gupta, who subsequently won on a BJP ticket. However, after the election, traders received a meager compensation of one lakh rupees and were asked to pay Rs 20 to 25 lakh for new shops. “How can a small trader, who earns daily, afford such a huge amount?” Gupta questioned.

Another businessman criticized the BJP government for targeting traders under the guise of development. He noted that shops were taken away with minimal compensation, and the ongoing widening of the Parikrama Marg continues to displace residents who had invested significant sums into their homes, only to receive nominal compensation in return.

The Yogi government appears to have responded to the electoral setback by announcing a significant policy change aimed at benefiting local traders affected by the Ram Path project. The new policy allows displaced shopkeepers to take possession of newly constructed shops on interest-free, long-term installments. Previously, shopkeepers had to pay upfront costs of Rs 20 to 25 lakh, forcing many to consider bank loans and making the new shops nearly unaffordable. The revised policy now allows shopkeepers to pay for their shops over 20 years without any interest.

This decision has been welcomed by affected traders. “The Ayodhya Development Authority (ADA) is now handing over shops without requiring any down payment,” said Ayodhya Divisional Commissioner Gaurav Dayal. “They will pay the entire cost in easy, interest-free installments over 20 years.”

Mohinder Srivastava, a local trader leader, expressed relief over the policy change, noting that it should have been implemented earlier. “After this decision, 150 shopkeepers have already taken possession of their shops,” he said.

The Yogi government’s policy shift in Ayodhya reflects a broader attempt to regain the trust of local communities and address the grievances that contributed to the BJP’s recent electoral defeat. As political dynamics in Uttar Pradesh continue to evolve, balancing development with local interests will be crucial for the ruling party.