Maharashtra Petrol Pump Owners Warn of Statewide Protest Over Frozen Bank Accounts in Cyber Scam Case

Protest likely in Mumbai on May 10; pump owners demand clarity on digital payment liabilities

Petrol pump owners across Maharashtra, including Mumbai, have threatened a statewide protest following the freezing of bank accounts of certain fuel dealers allegedly linked to cybercrime investigations. The Federation of Maharashtra Petrol Dealer Association (FMPDA), led by Uday Lodh, has raised concerns over what it calls unfair targeting of pump owners who unknowingly received payments through fraudulent digital transactions.

The Trigger: Frozen Accounts and Digital Payment Frauds

According to Lodh, the protests were sparked by incidents where cybercrime authorities traced illegal payment trails to a handful of petrol pumps in Vidarbha, leading to their accounts being frozen without prior notice.

“These payments were made for products sold at our outlets. We are retailers, not investigators. How are we to know the payer’s background?” Lodh argued.

He added that the freezing of accounts, without any wrongdoing on the part of pump owners—has disrupted daily operations, especially digital transactions that make up over 50-55% of pump business.

The federation has announced that a day-long protest may take place in Mumbai on May 10, and warned that the agitation could soon spread across Maharashtra unless the government intervenes. A delegation of pump owners is expected to meet senior police officers, bureaucrats, and politicians to seek a resolution.

“We have no mechanism to trace fraudulent UPI or card payments. Penalising us for cybercrimes committed by third parties is unjust,” said Lodh.

Cash-Only Fuel in Nagpur from May 10

In a sharp response to rising digital frauds, a section of petrol pump owners in Nagpur has decided to stop accepting UPI, credit, and debit card payments starting May 10. Fuel will only be sold against cash, citing ongoing financial risks and the inability to trace fraudulent payments.

According to sources within the federation, scammers used stolen or cloned UPI IDs and cards, and payments made via these methods were traced back to pumps, labelling the owners as “beneficiaries” despite their claims of innocence.

Additional Grievances: High Transaction Charges

Adding to their woes, Chetan Modi, President of the Petrol Dealers Association (Mumbai), highlighted another concern: high charges deducted by digital payment platforms, which result in less-than-expected credited amounts in pump owners’ accounts.

“It’s not just about frozen accounts; banks and payment gateways impose multiple charges. The system is broken,” Chetan Modi stated.

With digital transactions now a majority mode of payment at petrol stations, the issue underscores the urgent need for regulatory clarity on merchant liability in cybercrime cases, and better safeguards against misuse of digital channels.

Unless resolved swiftly, the disruption of services on May 10 and beyond could heavily impact motorists across urban and rural Maharashtra.