A dispute over cash payments at a PVR INOX cinema in Ahmedabad has raised questions about whether private businesses can insist that customers use digital payment methods instead of cash.
Ahmedabad-based advocate Utkarsh Dave has sent a legal notice to PVR INOX after alleging that a multiplex at Palladium Mall refused to accept cash for both a movie ticket and food. He was instead asked to make the payments through UPI.
The company, however, has disputed the allegation and said its cinemas do accept cash.
What Happened At The PVR INOX Counter?
According to the legal notice, Dave visited the PVR INOX outlet at Palladium Mall on September 13 to watch a movie.
He alleged that when he attempted to purchase his ticket using cash, staff members told him that only UPI payments would be accepted. He subsequently paid Rs 475 through UPI.
The same situation allegedly occurred when he later went to purchase food and beverages. He said he was again asked to use UPI and paid another Rs 420 digitally.
Customer Questions Cashless-Only Policy
Dave’s legal notice questions whether PVR INOX has officially adopted a policy prohibiting cash payments at the outlet.
He has also asked the company to clarify whether customers are informed about such a restriction before reaching the payment counter.
The notice argues that customers should know about payment restrictions in advance, particularly those who do not have access to smartphones, UPI or reliable internet connectivity.
The advocate has also asked PVR INOX to provide copies of any internal instructions or policies directing employees not to accept cash.
What Does Indian Law Say About Cash?
The dispute has also brought attention to the legal status of Indian currency.
Section 26(1) of the Reserve Bank of India Act, 1934, states that banknotes issued by the Reserve Bank are legal tender in India.
However, this does not necessarily mean that every private business is legally required to accept cash for every transaction.
Legal experts quoted in reports have pointed out that businesses can generally determine the payment methods they accept, provided there is no specific law or regulatory requirement requiring them to accept cash.
A business choosing to operate on a cashless basis can therefore raise a different question from whether Indian currency remains legal tender.
PVR INOX Says It Does Accept Cash
PVR INOX has denied refusing cash payments.
A senior company official said the cinema chain accepts cash, credit cards, debit cards and UPI at its cinemas.
According to the company’s explanation, customers paying in cash can have the amount converted into a refundable digital card, which can then be used at the cinema. Any unused balance can reportedly be refunded after the customer’s visit.
The company has also said that information about this arrangement is communicated to customers at its outlets, including the Palladium Mall cinema.
Seven Days Given To Respond
Dave has given PVR INOX seven days to respond to the legal notice.
He has indicated that if the company does not provide a satisfactory response, he may approach a consumer commission or other appropriate authorities.
The dispute therefore remains centred on what actually happened at the Ahmedabad outlet and whether customers were adequately informed about the available payment arrangements.
Cash Vs UPI Debate Gets Bigger
The incident highlights a broader issue as digital payments become increasingly common across India.
UPI has made cashless transactions convenient for millions of consumers, but not everyone has access to smartphones, banking apps or reliable internet connectivity.
For businesses, digital payments can simplify transactions and reduce cash-handling requirements. For consumers, however, clear information about accepted payment methods can be important before making a purchase.
In the PVR INOX case, the final outcome could depend on the company’s actual payment policy, how that policy was communicated and the circumstances surrounding the customer’s transaction.
Summary
An Ahmedabad advocate has sent a legal notice to PVR INOX after alleging that a Palladium Mall cinema refused to accept cash for a movie ticket and food, requiring him to pay Rs 895 through UPI. PVR INOX has denied refusing cash and said customers can use cash through a refundable digital-card arrangement. The company has been asked to clarify its policy.
