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The tax payment notice to the company exceeds its current market capitalisation of Rs 4,228.10 crore.
Delta Corp which operates casinos in India received a notice from the government on Friday. The GST amount claimed is based on the gross bet value of all games played at the casinos during the relevant period, Delta said, adding that a show cause notice will be issued to the company if it fails to pay.
The tax notice comes at a time when the company, valued at over $566 million, is already facing heat over the recent move in July by the country’s Goods and Services Tax (GST) Council to impose a 28% indirect tax on the money collected by gaming companies from customers, Reuters reported.
As per the filing to the exchanges, the alleged shortfall relates to Delta Corp and its two subsidiaries, Highstreet Cruises and Entertainment Pvt. Ltd and Delta Pleasure Cruise Company Private Limited.
While the total outstanding for Delta Corp stands at over Rs 628 crore, it is at Rs 3289.94 crore for Highstreet Cruises and Rs 1765.21 crore for Delta Pleasure Cruise Company, the exchange filing said.
The stock has been a market laggard and given negative returns of over 25% in the past 12 months as against 15% returns given by the Nifty during this period. The stock’s underperformance has been more pronounced this year as the price has eroded over 30% on a year-to-date basis.
The stock has also fallen below its 50-day and 200-day Simple Moving Averages (SMAs).
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