Delta Corp has announced that it will take legal action after the Goa government issued an order requiring the payment of license fees for the years 2020 and 2021 when the company’s casinos were closed due to COVID-19.
The company disclosed that the government of Goa has demanded payments with interest during the non-operational period of the company. The company did not disclose the total amount the Goa government sought.
Deltin Royale and Deltin JAQK, India’s two largest offshore casinos, and King Casino, the country’s only floating hotel with a casino, are among the company’s Goa casinos. All three casinos were not operational between 1 April and 31 October 2020 and again between 1 May and 30 September 2021.
In its announcement to the stock exchange, the company said, “The casinos operated by the company and its subsidiaries were not operational between 1st April 2020 and 31st October 2020 and between 1st May 2021 and 30th September 2021 on account of COVID-19 related restrictions.”
Delta Corp also disclosed that in October 2021, the company had allocated Rs 26.67 crore for fees for the year but had not paid them. Instead, it had requested the government to waive or reduce its casino licensing costs for the times when its casinos were closed.
The announcement also said, “The Government of Goa has issued an order for the payment of the license fee for the above-mentioned shutdown periods along with interest.”
“As provisions were already made in the relevant accounts and financial statements for these payments, there is no impact on the profit and loss account or the financial position of the company or its subsidiaries,” it added.
Currently, the company is planning to pursue legal action against the order by Goa government to pay the full license fees with interest.
