Arcil moves SC against stamp duty on retail loan NPA

The stamp duty was charged at 4.9% of the amount, or Rs 24.94 lakh

A case that can have industry-wide ramification for asset reconstruction companies (ARCs) acquiring retail loans, is coming up for hearing at the Supreme Court on January 7.

The Asset Reconstruction Company (India) Ltd (ARCIL) is challenging a Gujarat High Court order that said the company must pay stamp duty of about five per cent on loans it acquired from banks using power of attorney. 

But the case is likely to be limited to retail loans only as for large value corporate loans, the assignment deeds are enough. 

Earlier various state governments used to charge 0.75 per cent of the amount, subject to