The demolition of encroachments in Bidar has set off a balance of payments crisis for businessmen in the City.
The drive has forced hundreds of businessmen to vacate their shops and relocate. Wholesalers had moved their stocks on credit and down payment to retail traders in the city. After the demolition drive began most of these retail traders vacated their shops. Most of them are still out of business while some have relocated.

A wholesaler spoke to Deccan Herald on the condition of anonymity and claimed that more than 75 per cent of business establishments in the city were affected by the demolition drive. Whole sale traders awaited payment from retail traders and petty shops. But the latter were in no position to repay their dues. Wholesalers were also not able to locate where these retail traders and petty shop owners had gone, he said.

Anticipating more demand in the festive season, wholesalers had ordered bulk stocks. All this stock is lying unsold in their godowns. They are finding it hard to make payments to the companies which supplied the stock. It may take a year to recover from the crisis.

They feel that the district administration should have given businessmen enough time to wind up their business operation or should have waited till the festival season was over. They also feel that the district administration should have taken the business community into confidence before launching the drive.