Gujarat lawyer sends legal notice to PVR INOX forced UPI payment at Ahmedabad mall

A Gujarat High Court advocate has served a legal notice on PVR INOX Ltd alleging that customers were being compelled to make digital payments at the company's multiplex at Palladium Mall in Ahmedabad and were not being allowed to pay in cash.

Advocate Utkarsh Dave raised the issue after he visited the multiplex on 13 September to watch 'Mirzapur: The Movie' and was allegedly told that cash would not be accepted for his ticket. According to his notice, he subsequently paid Rs 475 through UPI.

Dave has further alleged that when he went to purchase food and beverages, he was again told that cash payments were not accepted and paid another Rs 420 through UPI. Copies of both transactions were attached to the legal notice served on PVR INOX.

The notice was sent to the company on 16 September.

Legal basis of notice

Dave has said his objection is not to PVR INOX offering UPI, credit cards or other digital payment options, but to what he describes as the compulsory exclusion of cash.

His notice refers to Section 26(1) of the Reserve Bank of India Act, 1934, which recognises RBI-issued banknotes as legal tender throughout India.

The notice acknowledges that the provision may not, by itself, impose an absolute statutory obligation on every private establishment to accept cash in every transaction. However, Dave has argued that a complete refusal of cash by a consumer-facing establishment raises questions of transparency, fairness, prior disclosure and the manner in which services are offered to consumers.

He has also invoked the Consumer Protection Act, 2019, and asked PVR INOX to clarify whether it has a cashless-only policy and, if so, the legal and contractual basis for such a policy.

Dave has asked the company to state whether customers are clearly informed before purchasing tickets or refreshments that cash will not be accepted.

He has also contended that the mere availability of UPI at a payment counter does not necessarily tell a customer that cash will be refused.

According to the notice, if PVR INOX has a restrictive cash-payment policy, it should be prominently displayed at points of sale and communicated to customers before they attempt to make a payment.

PVR INOX response

The notice asks PVR INOX to confirm whether employees at its Palladium Mall outlet were acting under a written company policy, circular or internal instruction prohibiting cash payments.

It also asks the company to explain what arrangements are available to customers who cannot make digital payments and whether such customers would effectively be denied services despite being willing to pay in cash.

Dave has sought a response within seven days, failing which he has said he may pursue remedies before the Consumer Commission and/or the Central Consumer Protection Authority.

PVR INOX told The Indian Express that cash is not refused at its cinemas.

"All our cinemas are equipped to accept credit cards, debit cards, UPI payments, and cash. At any time, we don't refuse cash," a senior company official said.

The official said cash payments are accepted at the counter and converted into a fully refundable digital card, with any unused amount refunded at the cinema after use.

"There is enough and more communication at the cinema about the same and we educate our customers as well. Palladium Ahmedabad is one of them," the official said.