Delta Corp, a major player in the gaming and hospitality sector, received a significant legal reprieve from the Goa bench of the Bombay High Court. This development has had a notable impact on its shares. The court, in response to writ petitions filed by Delta Corp and its subsidiaries, has directed tax authorities to refrain from making any final decisions on the Rs 16,193 crore tax notice served to Delta Corp.
Bombay High Court Halts Rs 16,193 Crore Tax Notice
As a result of this decision, Delta Corp’s shares saw an initial 8.23% surge, reaching Rs 140.70 in early trading on the BSE. Subsequently, the share price experienced a minor adjustment and currently stands at Rs 135.40, reflecting a 4.15% gain.
The tax dispute revolves around Delta Corp and its two subsidiaries receiving notices from the Directorate General of GST Intelligence, Hyderabad, pertaining to GST dues. Delta Corp’s notice amounts to Rs 11,139 crore, while its subsidiaries, Highest Cruises and Entertainment, and Delta Pleasure Cruises, have received notices of Rs 3,289 crore and Rs 1,765 crore, respectively. The Bombay High Court, through its recent ruling, has temporarily restrained the tax authorities from taking final action on these notices until further approval is granted by the court.
Delta Corp Shares Soar 8.23% Surge Following Legal Reprieve
Delta Corp had been under significant pressure due to the looming tax notice, experiencing a decline of more than 52% over the past four months and reaching a one-year low of Rs 124.60 on October 16, 2023. In contrast, it reached a one-year high of Rs 259.95 on June 28, 2023. Notably, the tax notice amounts to Rs 16,193 crore, whereas the company’s full market capitalization is approximately Rs 3,600 crore.
