Delta Corp is the top loser on the BSE since the opening bell today; from its close of R.175.25, it opened lower at Rs.157.75 – its 15% LC and went down to hit an over 2-year low at Rs.140.20.
The stock price hit this new low after the company received tax notices totalling Rs 16,822 crore from the Directorate General of GST Intelligence on Friday.
The first notice is for Rs. 11,140 crore, raised directly against Delta Corp and the other is for Rs 5,682 crore, raised against three of its subsidiaries -- Casino Deltin Denzong, Highstreet Cruises and Delta Pleasure Cruises. This tax demand is for the period between July’17 to March’22.
The company said that this GST demand is based on gross bet value and not gross gaming value. The company will be pursuing legal remedies to challenge this order and clarified that such tax demands are not a company-specific problem, but an industry-wide phenomenon.