SC upholds order to reject stamp dept penalty against Vodafone Idea Telecom
This story was originally published at 17:36 IST on 22 July 2025
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NEW DELHI – The Supreme Court on Tuesday upheld a Gujarat High Court order that had quashed the Gujarat stamp department's INR 76.44-million penalty against Vodafone Idea Telecom Infrastructure Ltd., formerly known as Vodafone Towers Ltd., under Section 39(l)(b) of the Gujarat Stamp Act, 1958. "We find no reason to interfere with the (high court)order. SLP (special leave petition) is dismissed," the top court said, dismissing Chief Controlling Revenue Authority's plea.
The case has its genesis in a scheme of arrangement sanctioned between Vodafone Idea Ltd. and its arm Vodafone Idea Telecom by the National Company Law Tribunal in 2019. The scheme facilitated the transfer and vesting of the fibre infrastructure undertaking of Vodafone Idea Ltd. into Vodafone Idea Telecom on a going concern basis.
Before sanction of the scheme of Vodafone companies by the National Company Law Tribunal, Vodafone Idea Telecom filed an application under the 1958 Act, seeking adjudication of the proper stamp duty payable on the tribunal's order. In 2021, the Additional Superintendent of Stamps issued a notice determining stamp duty chargeable and further alleging non-payment of stamp duty.
Vodafone Towers said that despite the company having expressed its readiness and willingness to pay the stamp duty, an order issued by the stamp department imposing a penalty on it. Aggrieved by imposition of the penalty, Vodafone Towers filed an application under Section 53(1) of the Gujarat Stamp Act, 1958, before the Chief Controlling Revenue Authority. However, the application was rejected by an order in 2022. The case reached the Gujarat High Court, which held in Vodafone Towers' favour and said that the imposition of penalty was unjustified and legally unsustainable.
On Tuesday, shares of Vodafone Idea Ltd. ended 3.4% lower at INR 7.37 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Avishek Dutta
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