Aarti Pharmalabs to Challenge ₹59.5 Crore Stamp Duty Order
Aarti Pharmalabs Limited received an order from the Superintendent of Stamps, Gujarat, levying ₹59.50 Crore in stamp duty and penalties related to its demerger. The company plans to challenge this order, citing strong legal grounds.
The levied amount of ₹59.50 Crore represents a material financial obligation, although the company intends to challenge it. The impact is considered medium as the final outcome is uncertain.
The company has been levied a significant amount of stamp duty and penalty, which is a negative financial event.
Aarti Pharmalabs Limited has received an order dated August 29, 2026, from the Office of the Superintendent of Stamps, Gandhinagar, Gujarat, pertaining to the adjudication of stamp duty on the Scheme of Arrangement (Demerger) between Aarti Industries Limited and Aarti Pharmalabs Limited. The order, received by the company on September 1, 2026, levies a stamp duty of ₹25 Crore and a penalty of ₹25 Crore, totaling ₹50 Crore, under the Gujarat Stamp Act, 1958. Additionally, a penalty of ₹9.50 Crore has been imposed under the provisions of the Gujarat Stamp Act, 1958. The total amount ordered is ₹59.50 Crore (Rupees Fifty-Nine Crore Fifty Lakh only).
The alleged violation pertains to the short payment or non-payment of stamp duty on the NCLT order dated September 21, 2022, which approved the demerger of Aarti Industries Limited's Pharma Division into Aarti Pharmalabs Limited. The company is currently evaluating the order and believes it has a strong case on merits. Aarti Pharmalabs Limited intends to challenge the order passed by the Stamp Authorities, stating that it has adequate factual and legal grounds to substantiate its position.
The company is in the process of obtaining the physical copy of the order, which was dispatched via registered post. The total quantifiable impact on the company's finances is ₹59.50 Crore. This disclosure is made pursuant to Regulation 30 read with Schedule III of the SEBI Listing Regulations.
A plain-language summary of a public exchange filing by Aarti Pharmalabs Limited. Read the original for the full detail.