Ahmedabad-based advocate Utkarsh Dave has sent a legal notice to PVR INOX Ltd. after the multiplex chain refused to accept cash for movie tickets and food purchases at its Palladium Mall outlet on September 13. According to The Times of India, Dave claimed he had no other option but to pay via UPI when he visited the cinema complex. In his legal notice, Dave questioned the multiplex chain's 'cashless-only' policy and has asked for legal clarification on why customers are being pushed towards UPI payments alone.
The incident involved Dave's visit to watch a film at PVR INOX, where he was initially asked to pay in cash for his ticket. However, when he wanted to buy food and beverages, staff at the counter refused to accept cash and said they would only accept UPI payments. As reported by The Times of India, the notice questions whether PVR INOX had clearly displayed its cashless policy at the point of sale or informed customers in advance. The notice stated that 'a customer cannot reasonably be expected to discover the existence of such a policy only after reaching the counter and tendering cash.'
PVR INOX operates a unified cashless policy across over 350 cinema properties in India, with close to 100 locations following this policy. According to Mint, customers can purchase movie tickets through the PVR INOX website or app, as well as ticketing platforms such as BookMyShow and District. At all locations, movie tickets can be purchased using UPI, credit cards, debit cards, other digital wallets or cash. However, customers visiting cashless locations are informed about the policy at the ticket counter, and those carrying only cash are offered the option of converting their cash into a cash card for F&B purchases.
The legal notice raises significant concerns about customers who do not have smartphones, UPI access or reliable internet connectivity. As reported by The Times of India, Dave has asked PVR INOX what arrangements are available for such customers and whether they could be denied entry despite being willing to pay in cash. The notice states that 'PVR INOX is required to explain whether such consumers would simply be denied the opportunity to purchase the service despite being ready and willing to make payment in lawful currency.' According to Mint, customers carrying only cash are offered the option of converting their cash into a cash card, which remains valid for one year from the date of cash conversion.
Citing Section 26(1) of the Reserve Bank of India Act, 1934, Dave argued that RBI-issued banknotes are legal tender, and a blanket refusal to accept cash at a consumer-facing business raises questions about transparency, fairness and disclosure. According to Mint, Dinkar Sharma, Partner at Jotwani Associates, explained that while RBI-issued banknotes are legal tender, private businesses are free to determine payment terms subject to applicable laws. However, such businesses must clearly communicate any cashless policies to customers in advance. As reported by Mint, a business may not accept cash for several reasons and may insist on soft cash payments or adopt a 'cashless' policy, but must communicate this policy to customers in advance.
Dave has sought a response from PVR INOX within seven days, warning that he may approach the consumer commission and other authorities if the company fails to respond within the stipulated deadline. According to Mint, the notice does not object to PVR INOX offering digital payment options but questions the refusal to accept cash and argues that consumers should be informed about any such restrictions in advance and allowed to make an informed choice about their preferred mode of payment. PVR INOX is yet to respond to the alleged legal notice over its cashless policy.
