Please have a look on the error again,
" Could not load template /home/domain/public_html/in/catalog/view/theme/default/template/default/template/payment/payu.tpl! in /home/domain/public_html/in/vqmod/vqcache/vq2-system_library_template_basic.php on line 26
you can see that default/template
is repeating in the error whereas no such path exists. the right path would be
you can try this(this method is just to show you where the problem lies):-
1. In template folder make a new folder named default and in that folder make a new folder named template.
2. Now move the payments folder into new template folder from older one.
3. try to check out on the website, PayU extension will work. However, this method may change the path of other payment methods, they would stop working.
so the better way is to change the path in the error, rather than creating the path according to the error. and I dont know how to do that. Please let me know if some one knows how to change this.