Pay in notes: Bengaluru’s small vendors shun UPI over tax notice fears
Bengaluru: Once a frontrunner in digital payments, Bengaluru is reportedly witnessing a sudden shift back to cash as small vendors—spooked by recent GST notices from the Commercial Taxes Department—begin refusing UPI transactions. QR code stickers are being replaced with signs reading “No UPI, only cash,” as traders fear tax scrutiny and demand customers pay in physical currency instead.
The department recently stated that businesses with an annual turnover exceeding Rs 40 lakh for goods or Rs 20 lakh for services must register under the Goods and Services Tax (GST) regime and pay the applicable taxes, as reported by Deccan Herald on Wednesday.
The directive has triggered panic among small, unregistered vendors—such as bakeries, tea stalls, cigarette kiosks, and gift shops—now facing tax scrutiny. Many are reportedly hiding UPI QR codes or removing them entirely, while others are stuck in a dilemma as most customers no longer carry cash.
Authorities have obtained data from UPI service providers regarding payments received by businesses from 2021–22 to 2024–25. Businesses found to have received more than Rs 40 lakh via UPI payments during this period—without GST registration or tax payments—are now being served notices.
The impact is visible across Bengaluru’s streets and markets. From food street stalls to gift shops, vendors say the tax enforcement fails to reflect their operational realities. While many operate on high turnover, their profit margins remain razor-thin due to rent, supply costs, and wages. They argue that this policy would threaten their survival.
A juice stall cashier near Indiranagar said they were told to remove UPI scanners but were unsure how to proceed. “Most customers don’t carry cash. We’re stuck,” DH quoted the cashier as saying. In RR Nagar, a stationery shop employee echoed similar concerns: “We use both UPI and cash. But with this rule, we either lose customers or lose money.”
A bakery and tea stall owner expressed frustration over the policy’s failure to account for ground realities, noting, “My sales look high, but most of it goes into rent, supplies, and staff. If I’m taxed on this, I’ll have to remove my UPI scanner and go cash-only.”
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ED arrests Sandeepa Virk, 'cosmetologist' for alleged money laundering
New Delhi, Aug 13 (PTI): The Enforcement Directorate said on Wednesday it has arrested a woman, who claims to be an actor and a cosmetologist, under the anti-money laundering law in a case of alleged fraud and misrepresentation.
The agency said the purported links of the woman, Sandeepa Virk, with a Reliance Group executive, Angarai Natarajan Sethuraman (President, Corporate Affairs), are also under its scanner. Sethuraman, in a statement, denied any connection with Virk or any transactions related to her.
Virk was taken into custody under the Prevention of Money Laundering Act (PMLA) on Tuesday after searches were conducted against her and her associates in Delhi and Mumbai over the last two days.
A special court sent her to the ED's custody till August 14, the agency said. The woman claims to be the owner of a skin care products selling website named hyboocare.com, which the ED claimed was a "front" for money laundering.
She and her associates are being probed for allegedly exerting undue influence through "misrepresentation" and "defrauding" individuals by soliciting money under false pretences.
According to an Instagram ID of Virk, she is an actor and entrepreneur and the founder of the said website.
The federal agency said in a statement that the woman was also "in touch with" Sethuraman, former director of erstwhile Reliance Capital Limited.
She was communicating with him regarding "illegal liaisoning", the ED claimed, adding that the searches at Sethuraman's residence "confirmed" these allegations.
"Besides, diversion of funds for personal benefit has also been unearthed during the course of the search action," it said.
The ED alleged that public money worth about Rs 18 crore belonging to Reliance Commercial Finance Limited (RCFL) was disbursed to Sethuraman in 2018 by "flouting" prudent lending norms.
The funds were lent under terms that allowed a deferment of the principal amount as well as the interest, with multiple waivers granted and no due diligence conducted, it said.
The ED claimed that besides this, a home loan of Rs 22 crore was provided by Reliance Capital Limited by "violating" the prudential norms. "A large part of these loans are seen to have been eventually siphoned off and remained unpaid," it alleged.
Sethuraman, in a statement, dismissed the allegations as "baseless". He denied any connection with Virk or any transactions related to her.
Detailing about Virk's web portal, the agency said it purportedly sold FDA-approved beauty products. However, the ED said the products listed on the website have been found to be non-existent and the portal lacks a user registration option and is plagued by persistent payment gateway issues.
A scrutiny of the website uncovered minimal social-media engagement, an inactive WhatsApp contact number and an absence of transparent organisational details, all of which reinforce the finding of "non-genuine" commercial activity, the ED claimed.
"These factors, including limited product range, inflated pricing, false claims of FDA approval and technical inconsistencies, indicate that the website serves as a front for laundering funds," it said.
Another social media-hosted bio data of the woman said she is a certified cosmetologist.
The ED said several "incriminating" documents were seized during the searches and the statement of a man named Farrukh Ali, stated to be an associate of Virk, was recorded.
The money-laundering case stems from an FIR lodged by the Punjab Police.
Sethuraman said that the home loan he received from Reliance Capital was granted following due process and was secured by the property offered as collateral.
