Petrol pump operators across Tamil Nadu have warned that they could temporarily stop accepting UPI and other digital payments, citing concerns over bank account freezes, payment disputes and police action linked to cybercrime investigations.
The warning was issued by the Tamil Nadu Petroleum Dealers Association (TNPDA), which represents around 5,000 fuel outlets across the state.
Association president K.P. Murali has reportedly written to Chief Minister C. Joseph Vijay, highlighting the difficulties dealers face when digital transactions received from customers later become part of cybercrime investigations.
Dealers Raise Concerns Over Account Freezes
According to the association, petrol pump dealers have limited ability to verify customers' identities or determine the source of funds when payments are made digitally.
However, dealers claim they are increasingly being treated as suspects when a transaction is later disputed or linked to a cybercrime case.
Murali said banks have placed liens on dealers' accounts in some cases and have also frozen entire accounts following instructions from cybercrime authorities.
The association argues that such action can disrupt the day-to-day operations of fuel stations, even when the dealer has no direct connection to the alleged offence.
Thousands of Digital Transactions Every Day
Digital payments have become an important part of fuel station operations in Tamil Nadu. The association said its roughly 5,000 outlets handle an average of 200 to 500 digital transactions per day.
At some petrol pumps, digital payments reportedly account for more than half of the station's total revenue. Dealers therefore fear that prolonged account restrictions could affect their ability to manage routine business activities, including payments to suppliers and employees.
Dealers Claim Police Detentions
The association has also raised concerns over the treatment of dealers during cybercrime investigations. It cited instances where dealers were allegedly taken for questioning during early morning hours and detained without being given clear details about the transaction being investigated.
TNPDA said it does not oppose cybercrime investigations and is willing to cooperate with authorities. However, the association maintains that dealers should not automatically be treated as accused simply because they accepted a payment from a customer.
Association Seeks Clear Rules
The dealers' body has asked authorities to establish a standard procedure for dealing with disputed digital transactions at fuel stations. It has also requested that banks provide written information about disputed transactions before taking action against dealers.
Another key demand is that banks should place a lien only on the amount under dispute, rather than freezing an entire bank account. According to the association, this would allow dealers to continue operating their businesses while investigations are underway.
The association has further sought protection against detention unless there is evidence indicating a dealer's direct involvement in a suspected offence.
Digital Payment Boycott Threat
TNPDA has warned that its members could temporarily stop accepting UPI and other digital payment methods across Tamil Nadu if account freezes and detentions continue.
Such a move could affect customers at thousands of fuel stations, particularly as digital payments have become a major payment method for motorists.
The association is seeking intervention from the state government and relevant authorities to ensure that cybercrime investigations continue without penalising fuel dealers who have merely processed customer payments.
