Stung by Lok Sabha election results, Yogi government in Ayodhya adopts course correction with ‘locals first’ approach

After its defeat in the recently concluded Lok Sabha elections in Uttar Pradesh, the Yogi government has made a course correction, changing its policy towards Ayodhya traders from a business-centric approach to prioritizing local interests.

According to media reports, the government has announced a major policy change to support local traders affected by the Ram Path project. The new policy enables displaced shopkeepers to acquire 500 new shops under interest-free, long-term installment plans.

The BJP, which had relied heavily on the consecration of the Ram Mandir in its campaign, lost the Faizabad Lok Sabha seat, an area central to its temple politics, to the Samajwadi Party (SP). The BJP’s loss in Faizabad is attributed to the discontent of local shopkeepers.

The party managed to retain only 33 of 80 seats in Uttar Pradesh, with the most surprising defeat in Ayodhya, where its two-time MP Lallu Singh was defeated by Awdhesh Prasad of the Samajwadi Party due to anger and resentment among local traders who felt betrayed.

Many residents whose shops were demolished due to the construction of Ram Path are said to have expressed their dissatisfaction through voting.

Many entrepreneurs and residents believe that the compensation received was grossly inadequate.

Pankaj Gupta, chairman of Ayodhya Dham Vyapar Mandal, said that due to the widening of Ram Path, shops were destroyed and traders received only Rs 1-2 lakh as compensation, which was more like charity. “We closed our stores for two days in protest, but no public representative or official responded to our complaints,” he said.

Gupta alleged that before the 2022 assembly elections, the then deputy chief minister Dinesh Sharma had assured traders that they would get new shops free of charge in return for the demolition. However, after the elections, traders received a meager compensation of Rs 1 lakh and were asked to pay Rs 20 to 25 lakh for new shops, he added.

Policy change

The new policy allows displaced shopkeepers to take possession of 500 newly constructed shops in interest-free, long-term installments. Earlier, shop owners had to pay upfront for taking over the shops and the cost ranged from Rs 20 to 25 lakh. This requirement forced many merchants to consider bank loans, making it almost impossible for them to afford new stores.

However, the revised policy allows shop owners to pay for their shops for a period of 20 years without any interest. The decision was welcomed by affected entrepreneurs.

“The Ayodhya Development Authority (ADA) is currently handing over shops without any down payment,” said Gaurav Dayal, divisional commissioner, Ayodhya.

Mohinder Srivastava, a local trade leader, expressed relief over the policy change and said it should have been implemented earlier. “After this decision, 150 store owners have already taken over their stores,” he said.

The Yogi government’s change in policy in Ayodhya reflects a broader attempt to regain the trust of local communities and address grievances that contributed to the recent electoral defeat of the BJP.