Calcutta High Court grants interim relief to Delta Corp in ₹6,000 crore tax show cause notice

This legal reprieve comes as a major relief for Delta Corp, as the Calcutta High Court has put a halt on the show cause notice, providing the company with temporary respite amid the ongoing legal battle. The move mirrors a similar decision by the Sikkim High Court, which had previously granted a stay on a ₹628 crore GST demand order against Delta Corp.

The Directorate General of GST Intelligence in Hyderabad had issued three demand notices on September 22, citing a shortfall in tax payments by Delta Corp Limited. Among the demands, a notable sum of over ₹628 crore was linked to the Casino Deltin Denzong, situated in Sikkim.

In response to the legal proceedings, Delta Corp informed the stock exchanges on October 14 that its subsidiary, Deltatech Gaming Limited, had received intimation from the Directorate General of GST Intelligence, Kolkata.

The communication specified a payment demand of ₹6,236.81 crore for the tax shortfall covering the period between January 2018 and November 2022, along with an additional ₹147.51 crore for the period from July 2017 to October 2022.

The shares of the company ended 9% higher in the session on Thursday. The stock has fallen over 32% in 2023 so far.