The Delhi high court has granted relief to Ambuja Cement Limited (ACL) by dismissing a show cause notice and order demanding ₹218.87 crore in stamp duty as well as a ₹69 crore penalty,reported news agency ANI.
The industry giant, part of the Adani group challenged an order passed by the collector of stamps, Delhi, which had directed ACL to pay a stamp duty of ₹218,87,81,917.26 in a merger order going back to November 14, 2011.
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Under a notification from 1937, Ambuja was protected from having to pay the fee even if the case was filed under section 391 of the Companies Act, 1956.
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The court also noted that the show cause notice issued by the collector of stamp had passed the statute of limitations. The writ petition filed was allowed but the stamp duty and penalty issued by the collector of stamps, Delhi was done away with.
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A team from S&A law offices comprising of Vijay K Singh, Adhip Kumar Ray, Kumar Shashwat Singh Sawno and Simran Sakunia represented Ambuja Cement Limited in the case.
While the case continues, ACL has continued to move towards expanding the business by focussing on strategic investments and capacity expansions to bolster its market position. They recently acquired Orient Cements and are looking to boost their productivity.
They are set to increase their production targets to to 97 million tons per annum, after the acquisition. The company is also looking to acquire a construction enterprise called ITD Cementation India Limited to improve execution quality in their projects.
The company is looking to increase its green power capacity, aiming for green energy to make up 60 per cent of its total power, as a part of their sustainability initiative.