Bombay HC Seeks Response On Plea Against Google LLC On Alleged Stamp Duty Evasion

Mumbai: The Bombay High Court recently sought response on a petition by advocate and former IPS officer YP Singh alleging large-scale evasion of stamp duty by Google LLC through its video-sharing platform, YouTube.

Singh, who runs a YouTube channel where he uploads certain videos which include film related to the realities of the criminal justice system, has alleged that Google has been exploiting content creators, including himself, by making them sign contracts without consideration, thereby bypassing mandatory stamp duty payments and registration.

Allegations of Unstamped Contracts

Singh’s petition, filed last year, claims that content creators are forced to accept YouTube’s standard terms of service, which grant the platform the right to monetize their content through ads, without providing any payment to the creators.

He argues that under the Indian Contract Act of 1872, agreements made without consideration are void unless registered and subjected to stamp duty. According to Singh, these contracts are neither registered nor stamped, leading to significant loss of revenue for the state government.

Loss of Revenue to Maharashtra Government

Singh filed a representation with the Deputy Inspector General (DIG) of Registration, raising the issue of unregistered contracts. The DIG referred the matter to the Additional Controller of Stamps in December 2023, but despite multiple reminders, no action was taken.

Claims of Official Inaction and Dereliction of Duty

Singh claims that, under the Maharashtra Government Servants Regulation of Transfer and Prevention of Delay in Discharge of Official Duties Act, 2005, authorities had a 45-day window to act, which expired on January 22, 2024.

Singh argued that the inaction by government officials is a dereliction of duty and amounts to an undue financial benefit to Google, depriving the Maharashtra government of significant stamp duty revenue. The petition also calls for disciplinary action against the officers responsible for failing to address the matter in a timely manner.

Separate Defamation Suit Against YouTube

The former IPS officer has urged the court to direct the Additional Controller of Stamps to impose stamp duty on YouTube’s contracts with content creators, including his own.

Additionally, he has sought directions for proper registration of these contracts and action against the officials for their failure to discharge their duties. Singh has also filed a separate defamation suit against YouTube, accusing the platform of falsely labeling him a “copyright pirate.”

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Court Proceedings and Next Hearing

During the hearing on August 25, counsel for state and Google LLC sought time to file their affidavits respectively. Justice Kamal Khata, while granting time, also asked Singh to file a rejoinder affidavit and scheduled the matter for further hearing on September 29.

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