Urban Company Limited has informed the Exchange about Receipt of an order from the Office of Divisional Commissioner, Revenue Department: Stamp & Registration Branch, Government of National Capital Territory of Delhi
URBANCO · price
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Urban Company received an order from the Collector of Stamp, Government of NCT of Delhi dated May 14, 2026. The authority determined a stamp duty liability of Rs. 23.9 lakh plus a penalty of Rs. 25 lakh, totaling approximately Rs. 48.9 lakh, related to the issuance of shares in dematerialized form during 2025. The dispute stems from a circular issued by Delhi Revenue Department in 2025 questioning the rate of stamp duty applicable to dematerialized share issuances under the Indian Stamp Act. The company states it had already paid stamp duty through the prescribed depository mechanism (NSDL/CDSL) in accordance with Section 9A(1) of the Indian Stamp Act. The company has pre-emptively filed a writ petition before the Delhi High Court, which is currently under judicial consideration. The company maintains it has a strong case on merits and states the order will not materially impact its financial or operational activities.
The total penalty of Rs. 48.9 lakh is relatively small for a company of Urban Company's size and does not appear material. However, an adverse court ruling could set a precedent affecting how stamp duty is paid on dematerialized shares industry-wide. The stock is unlikely to see significant movement purely from this announcement.