The Allahabad High Court last week questioned whether petrol and diesel retail outlet owners in the National Capital Region (NCR) can be compelled to bear the cost of installing Automatic Number Plate Recognition (ANPR) cameras pursuant to a State Government direction issued in compliance with directions of the Commission for Air Quality Management (CAQM).

A bench of Justice JJ Munir and Justice Indrajeet Shukla observed that a 'serious' issue arises as to whether the State Government's letter dated June 4, 2026, requiring petrol and diesel retail outlets to install ANPR cameras by September 30, 2026, also obliges the retail outlet owners to get the cameras installed at their own cost.

The Court was hearing a petition filed by the Uttar Pradesh Petroleum Traders Association, representing petrol and diesel retail outlet owners.

For context, the Commission for Air Quality Management issued directions on May 15, 2026, imposing restrictions on fuelling vehicles without a valid PUCC across the NCR.

The cameras allow officials to check vehicle registration numbers against government records when a vehicle enters a petrol pump.

Case of the petitioner

The petitioners submitted that there was “no authority in law” under which either the State Government or the oil companies could compel retail outlet owners to bear the cost of installing the cameras.

The petitioners argued that they had no objection to the installation of ANPR cameras but they can't be made to bear the expenditure involved in the installation.

The Uttar Pradesh Petroleum Traders Association argued that requiring retail outlet owners to bear the cost amounted to a “compulsory exaction of money”, which, according to them, would violate Articles 300A and 265 of the Constitution.

High Court's order

The High Court treated the issue as a 'serious' one as it questioned whether the impugned State Government letter, carrying out the CAQM's directions in the NCR, could oblige retail outlet owners to install ANPR cameras at their own expense.

The Standing Counsel appearing for the State Government sought time to obtain instructions. Counsel appearing for Indian Oil Corporation Limited (respondent no. 15) also sought time to obtain instructions.

The petitioners' counsel submitted that the authorities and the oil companies were threatening coercive action in view of the September 30 deadline for installing ANPR cameras at retail outlets.

In these circumstances, the Court directed that "until 05.10.2026, no coercive measures shall be taken" by the respondents against members of the petitioner Association to install ANPR cameras at their retail outlets.

The Court, however, clarified that if the State Government installs the ANPR cameras at its own cost, the members of the petitioner Association would immediately facilitate the installation.

The Registrar (Compliance) was directed to communicate the order to senior officials of the Food and Civil Supplies and Transport Departments, district authorities in several NCR districts, and regional officials of oil companies including Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited.

It may be noted that the Court granted 3 days to obtain instructions and had adjourned the matter to October 5. However, on October 5, the matter was listed before a bench involving Justice Prakash Padia, who recused himself from hearing the case.