Delta Corp Surges 8% As Bombay High Court Restraints Rs 16,195 Crore Tax Notice

Delta Corp Share Price: Shares of Delta Corp jumped over 8 per cent after the Bombay High Court restrained tax authorities from passing any final order on the ₹16,195-crore GST notice issued to the Casino operator.

Delta Corp shares were, last month, battered badly after the GST Council okayed imposing of 28 per cent tax on online gaming, casinos and horse racing.

The only Indian listed company that is engaged in the casino gaming industry, along with two of its subsidiaries, later received notices for payment of tax shortfall of Rs 23,000 crore. The tax demand was made for the period between July 2017 and March 2022. The court will now hear the matter on February 5, 2024.

The order was passed by the Goa Bench of Bombay High Court.

“Basis a statement made on behalf of the concerned tax authorities, the Hon’ble High Court has directed such authorities not to pass any final orders on the captioned show cause notices without the prior permission of the Hon’ble High Court. Dates have been fixed for completion of pleadings, and the hearing and final disposal of such writ petitions,” Delta Corp told stock exchanges.

A total of 3,84,029 small investors owned Delta Corp stocks and accounted for 36.32 per cent stake in the company as on September 30. For the quarter, Casino Delta Corp clocked 1.6 per cent rise in consolidated profit at Rs 69.4 crore on a flattish sales growth at Rs 270.6 crore.

The stock surged as much as 8.2 per cent to its day’s high of Rs 140.70. The stock has already shed over 42 per cent in the last 1 year and 36 per cent in 2023 YTD. It also lost over 21 per cent in September after the Directorate General of GST Intelligence, Hyderabad sent notice of GST shortfall to the firm.

Earlier, the Sikkim High Court on October 20 directed to maintain status quo until the next hearing.

The Directorate General of GST Intelligence, Hyderabad, on September 22, had issued three demand notices against Delta Corp, including a Rs 628 crore notice for a Sikkim-based casino.

Delta Corp saw a significant blow in July 2023 when the GST Council announced new tax rates affecting its core businesses, including casinos, horse racing, and online gaming.