Income Tax Department Imposes Fine of 1.36 Crore on Delhivery
**Delhivery Faces Tax Disputes Amidst Significant Expansion**
Delhivery, a leading logistics firm, recently made headlines for its acquisition of rival logistics company Ecom Express in a deal worth Rs 1407 crore. However, the company is currently embroiled in tax-related disputes with the Income Tax department and the Directorate General of GST Intelligence (DGGI) in India.
The first issue arose in May 2025 when Delhivery received a show-cause notice from the DGGI, Mumbai, for an amount of Rs 49.19 crore. The dispute pertains to an interpretation issue regarding the applicable tax rate. The company's management is actively contesting this matter through legal or administrative channels.
In a separate incident, Delhivery was issued a penalty order of Rs 1.32 crore by the Income Tax department of Delhi related to certain expenses of Rs 3.95 crore during the financial year 2015-16. The company received this penalty order on June 28, 2025, and has stated it will contest the order before the appropriate authority. Delhivery also mentioned that this penalty does not materially impact its operations or financials.
Despite these disputes, Delhivery remains operationally unaffected. The company turned profitable in FY25, posting a profit of Rs 72.6 crore, and the acquisition of Ecom Express occurred in a profitable fiscal year for Delhivery. The acquisition was an all-cash deal, marking a significant expansion in the logistics sector for the company.
It is important to note that the penalties and the show-cause notice do not directly relate to the Ecom Express acquisition. Delhivery did not disclose any details about the expenses related to the acquisition in its exchange filing. The company has, however, received approval from the Competition Commission of India for the acquisition.
As the disputes continue, Delhivery plans to contest the penalty order before the appropriate authority. The current status of these disputes is ongoing, with no resolution or settlement reported yet.
[1] Source: Delhivery's exchange filing and company statements.
- Despite ongoing disputes with the Income Tax department and the Directorate General of GST Intelligence (DGGI), Delhivery, a significant player in the business sector, went ahead with its expansion in the finance sphere by acquiring Ecom Express in a defi exchange worth Rs 1407 crore.
- In the financial year 2025-16, Delhivery faced a penalty of Rs 1.32 crore from the Income Tax department of Delhi, but the company stated it would contest the order and the matter does not materially impact its operations or financials.
- Amidst tax-related issues, Delhivery is actively investing in its business, demonstrating resilience in the face of financial challenges, as shown by its profitable FY25 and subsequent acquisition of Ecom Express.
