Intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Leela Palaces Hotels & Resorts Limited has received an adjudication order from the Office of Divisional Commissioner, Delhi Revenue Department, regarding stamp duty on issuance of dematerialized shares during 2021. The authorities have raised a stamp duty demand of Rs. 8,04,461 plus a penalty of Rs. 20,00,000, totaling approximately Rs. 28 lakh. The company claims it had paid stamp duty correctly under Section 9A(1) read with Article 56A of the Indian Stamp Act. The dispute stems from differing interpretations of stamp duty rates applicable to dematerialized shares effective July 1, 2020, under the Finance Act 2019 amendments. The company states there is no material impact on its financial or operational activities and is pursuing appropriate legal remedies. Multiple other companies have also filed writ petitions before the Delhi High Court on the same issue.