Tenneco Clean Air India has been served a final order from the Collector of Stamps, Maharashtra, confirming a demand of ₹128.46 million for stamp duty and an enhanced penalty of ₹243.59 million. The total demand amounts to ₹372.04 million. The company and its legal advisors believe they have adequate grounds to challenge this order and are evaluating legal remedies.
Substantial Stamp Duty and Penalty Levied
Tenneco Clean Air India has received a final order dated October 27, 2026, from the Collector of Stamps, Enforcement-I, Government of Maharashtra. This order reconfirms a stamp duty demand of ₹128.46 million and imposes an increased penalty of ₹243.59 million. The aggregate amount payable under this order totals ₹372.04 million.
Background of the Dispute
The dispute originated from a show cause notice issued on November 3, 2023, related to an instrument comprising an order passed by the Hon’ble National Company Law Tribunal, Chennai, on April 26, 2019. This order sanctioned a Scheme of Arrangement (Demerger) involving Tenneco Automotive India Private Limited. Initially, the proposed stamp duty was ₹136.23 million with a penalty of ₹68.12 million.
Legal Challenge and Current Status
The Company had challenged the Collector’s initial order, issued on February 2, 2024, before the Hon’ble Bombay High Court. The High Court, through its orders on December 5, 2025, and April 6, 2026, directed the Collector to pass a reasoned order after hearing the Company, leaving all contentions open. The final order received on November 3, 2026, from the Collector has now reconfirmed the stamp duty and significantly enhanced the penalty.
Based on the assessment of the Company and its legal advisors, Tenneco Clean Air India believes it possesses adequate legal grounds to contest this final order and is actively evaluating appropriate legal recourse.
Source: BSE
