Shares of Delta Corp tanked by more than 18 per cent on the bourses on Monday after it was slapped by a massive tax notice aggregating to Rs 16,822 crore.
Delta Corp, which is present in the casino (live, electronic and online) gaming industry, said both the company and its subsidiaries have been legally advised that the notices and the tax demands are “arbitrary and contrary to law’’.
The firm and its subsidiaries are now planning to “pursue all legal remedies available to them to challenge such tax demands and related proceedings’’.
The announcement led to panicked investors dumping the stock as the demand is more than three times its current market cap of Rs 3,829 crore.
Shares of Delta Corp ended at Rs 143 on the BSE, a crash of Rs 32.25, or 18.40 per cent, over the last close, while it settled with losses of almost 17 per cent at Rs 145.65 on the NSE.
Last Friday, the company disclosed that it has received an intimation for payment of shortfall tax under the CGST Act, 2017 and Goa SGST Act, 2017, from the Directorate General of GST Intelligence, Hyderabad.
The notice advised the company to pay an alleged tax liability of over Rs 11,139 crore along with interest and penalty for the period from July 2017 to March 2022, failing which a show cause notice will be issued to it under Section 74(1) of the CGST Act, 2017 and Goa SGST Act, 2017.