Stamp Duty Dispute: Urban Company Challenges Delhi Government’s Rs 25 Lakh Penalty

Urban Company (formerly known as UrbanClap), Asia’s largest on-demand, full-stack home services marketplace, recently issued a disclosure to NSE Ltd and BSE Ltd regarding receipt of an order from the collector of stamps, Government of NCT of Delhi.

Background

The company has received an order dated May 14, 2026, under the Indian Stamp Act, 1899, saying that it has to pay Rs 23,90,741 as stamp duty for issuing some shares in dematerialised form in 2025. Along with this, a penalty of Rs 25,00,000 has also been imposed.

The Stamp Duty Department of the Government of Delhi is saying that the company should have paid stamp duty under the Indian Stamp Act, 1899, as it applies in Delhi, on the issue or allotment of shares. They claim that even though the company paid stamp duty through depositories like NSDL and CDSL at the time of allotment, this does not fully meet the company’s legal responsibility under the stamp duty laws applicable in Delhi.

On the other hand, the company says it has already paid the required stamp duty properly. The payment is said to have been made under Section 9A(1) and Article 56A of Schedule I of the Indian Stamp Act, 1899, through the system provided by the Central Government through depositories. The company claims that it followed the prescribed procedure and paid the duty at the rate applicable at the relevant time.

The company has already filed a writ petition in the Delhi High Court about this matter, and the case is currently being heard by the court.