The Supreme Court questions the government on whether UPI MDR (merchant discount rate) charges amount to an illegal “expropriation” and asks for an explanation of the legal basis for the levy. The court refuses a petitioner’s request for an interim stay of the charges, but it issues notice to the government for further submissions.
In the hearing covered by multiple outlets, the court asks whether MDR is neither a tax nor a fee, and what mechanism or authority justifies it. The petitioner’s argument centres on the nature of MDR charges and their effect, while the government is expected to clarify how such charges are classified under law and why they are permitted.
Both reports indicate the case is at an early stage. After the court’s refusal to grant an immediate stay, the matter proceeds through the notice process, where the government’s response and the petition’s legal contentions are expected to be examined.
