E2E Networks Faces Stamp Duty Liability of Rs 2.52 Crore Over Share Issuance (2021-2025)
E2E Networks Limited has received an order from the Office of the Collector of Stamps, Government of NCT of Delhi, concerning the stamp duty applicable to the issuance of certain shares in dematerialized form. The order relates to a period spanning from 2021 to 2025.The Collector of Stamps issued an order dated May 14, 2026, determining a stamp duty liability and an associated penalty for the Company.
The total financial liability detailed in the order is structured as follows:
| Component | Amount (INR) |
|---|---|
| Stamp Duty Liability | 1,27,92,189/- |
| Penalty | 1,25,00,000/- |
| Total Aggregated Amount | 2,52,92,189/- |
The dispute centers on the statutory liability for stamp duty. The Collector of Stamps alleges that stamp duty, as applicable under the Indian Stamp Act, 1899, was payable on the issuance or allotment of shares, and that merely depositing stamp duty through depositories such as NSDL or CDSL does not discharge the Company's statutory liability.
The Company countered the claims by noting that it had duly paid the required stamp duty in accordance with Section 9A(1) read with Article 56A of Schedule I of the Indian Stamp Act, 1899, utilizing the depository mechanism prescribed by the Central Government, at the rates applicable at the relevant time.
E2E Networks Limited has already initiated legal action regarding this matter, having filed a writ petition before the Hon'ble High Court of Delhi. The proceedings concerning the dispute are currently under judicial consideration.
Regarding the impact on the company's operations, the assessment of the final financial impact from the order is dependent upon the outcome of the writ petition filed by the Company before the Delhi High Court.
E2E Stock Price Movement
Today, E2E Networks Limited shares gained considerable momentum, edging up 5.00% to settle at ₹3175.6 today. The stock traded on a total volume of 62,085 shares, suggesting robust buying interest throughout the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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