Delta Corp Surges As Bombay High Court Grants Tax Relief

Delta Corp, a major player in the casino industry, witnessed a 5% surge in its shares at the opening trade on October 25. This development comes a day after the troubled casino giant received interim relief from the Bombay High Court in Goa, effectively putting a hold on the daunting show-cause notices issued by the tax department.

By 12:45 pm, Delta Corp's stock was trading at Rs 132.30, marking a 3% increase compared to its closing price on October 23. The relief was granted by the Goa Bench of the Bombay High Court and has far-reaching implications for the company.

The Bombay High Court has now directed the Directorate General of GST Intelligence in Hyderabad to refrain from passing any final orders regarding the staggering Rs 16,195 crore tax notice against Delta Corp without prior court permission.

Delta Corp and its subsidiaries were grappling with a tax payment notice of over Rs 23,000 crore issued by the Directorate General of GST. The company is a prominent player in the casino industry and is also active in the online gaming sector through its subsidiary, Deltatech Gaming. However, it faced a major setback in July 2023 when the GST Council announced new tax rates that adversely impacted its core businesses, including casinos, horse racing, and online gaming.

In a further development, the Sikkim High Court, on October 20, directed that the status quo be maintained until the next hearing, providing additional respite for Delta Corp.

Delta Corp shares had been under mounting pressure in recent weeks, culminating in a 52-week low and a steep 9% drop in a single trading day last week. Over the past month, the stock had seen a notable decline, shedding more than 22% of its value.