NEW DELHI: With regard to a PIL over the new MDR framework for UPI payments, the Supreme Court refused to stay the Centre's order and did not incline to grant any interim relief. However, it issued notice to the Centre and sought its detailed affidavit.
The PIL (Public Interest Litigation) filed before the top court by advocate Anjan Datta questioned the 0.4% Merchant Discount Rate (MDR) on specified merchant payments above Rs 2,000, due to be implemented from October 15 onwards.
Datta had moved the apex court seeking quashing of the September 14-15 notifications -- of the Centre -- levying charges on commercial UPI payments exceeding Rs 2,000.
A bench of CJI Surya Kant and Justices Joymalya Bagchi and Vipul M Pancholi, while issuing notice to the Centre, said, "Let all the facts be brought by the Centre through an affidavit."
The counsel for the petitioner contended that UPI had curbed black money and the fresh charges would discourage digital transactions.
On the other side, defending the move, Additional Solicitor General (ASG) N Venkataraman said that the implementation will begin from October 15 and 96 per cent of gateway users remain exempt.
He added that essential services face only a Rs 5 cap and there is also an overall value cap. Stressing that it is neither a tax nor a fee, he described it as an industry settlement mechanism. Hearing these submissions, CJI Kant said technical details must be placed on affidavit.
Meanwhile, the other judge, Justice Bagchi, questioned the executive scope for such expropriation and the legal character of the charge when it impacts 140 crore citizens.
