Leela Palaces Hotels & Resorts Limited has received an order from the Delhi Revenue Department regarding a stamp duty dispute on share issuances from 2021. The company faces a demand of ₹8,04,461 along with a penalty of ₹20,00,000. Management has stated that the order has no material impact on the company’s financial or operational activities, as it maintains that the required duties were already paid in accordance with established legal provisions.
Details of the Revenue Order
On May 12, 2026, Leela Palaces Hotels & Resorts Limited received an official communication from the Office of the Divisional Commissioner, Government of the National Capital Territory of Delhi. The order pertains to the adjudication of stamp duty regarding the issuance of shares in dematerialized form conducted during the 2021 calendar year. The authority has raised a total demand of ₹8,04,461 and imposed a penalty of ₹20,00,000.
Company Position and Next Steps
The company has confirmed that this matter originates from conflicting interpretations of stamp duty rates applicable to dematerialized share issuances under the Indian Stamp Act, 1899, as amended by recent financial legislation effective from July 1, 2020. Management asserts that the stamp duty for these shares was properly settled at the time of issuance.
The company noted that this remains part of a broader legal issue currently facing several entities, with various writ petitions already filed before the Hon’ble High Court of Delhi. As these proceedings are presently under judicial consideration, the company is actively pursuing appropriate legal channels to address the matter. The leadership maintains that this situation will have no material impact on the firm’s ongoing operations or financial health.
Source: BSE
