JK Tyre Receives Rajasthan Stamp Duty Order, Plans Appeal Against Rs 4 Crore Penalty and Interest

JK Tyre & Industries Ltd told stock exchanges that it has received an order from Office of the Collector Stamps, Rajasthan Special Circle, Jaipur for payment of stamp duty in connection with the merger of Cavendish Industries Ltd with JK Tyre & Industries Ltd. The company received the communication on June 11, 2026 at 11:47 AM. The order was passed on June 10, 2026 under various sections of Rajasthan Stamp Act, 1998.

As per the order, JK Tyre has been directed to pay applicable stamp duty along with surcharges. In addition, the authority has imposed a penalty of Rs 2 crore and interest of Rs 2 crore.

JK Tyre stated that the stamp duty and surcharges are already being paid, as they had been provided for by the company. However, the company believes it has a strong case to seek relief from the penalty and interest charges. The company said it had approached the authorities for stamp duty adjudication within the prescribed time and therefore intends to file an appeal before the appropriate higher authority.

The company further clarified that it does not expect any financial impact from the order, as the stamp duty liability has already been accounted for. JK Tyre remains confident about its position and plans to pursue the matter through the appellate process.