Delta Corp Ltd. Faces Financial Turmoil as Subsidiaries Grapple with Tax Demands

A well-known participant in the Indian gambling business, Delta Corp Ltd., has unexpectedly found itself in a vulnerable financial position. 

While another subsidiary, Deltatech Gaming Ltd., received a stunning tax demand of over Rs 6,000 crore from the Directorate General of GST Intelligence on Monday, its shares dropped to a three-year low.

Due to this most recent demand, Delta Corp's overall tax liabilities have increased to more than Rs 23,000 crore, which is more than six times its market capitalization of little under Rs 4,000 crore. Regrettably, this is not the end of the company's problems.

Source- CNBC18tv.com

Also read, Accenture's 2023 Salary Freeze in India

The problem started on September 22 when Delta Corp disclosed a tax notice from the Directorate General of GST Intelligence in Hyderabad for Rs 11,139 crore. With claims going back to July 2017, this also included interest and penalties.

Three subsidiaries of Delta Corp subsequently got tax claims, raising the total to Rs 16,823 crore. The troubled corporation claims that these tax requests are based on gross bet values, not gross rake amounts, and they have committed to using all available legal options to fight these procedures.

In the meantime, Delta Corp.'s shares have collapsed, losing half of their value in just 100 days, and the September quarter's poor financial reports have made the situation much worse.

In the meantime, Delta Corp.'s shares have collapsed, losing half of their value in just 100 days, and the September quarter's poor financial reports have made the situation much worse.

The online gaming industry as a whole faces a deluge of tax payment notices, amounting to nearly Rs 1 lakh crore, making Delta Corp and its subsidiaries ground zero for this financial storm.

Also read, India and Indonesia Face Growing Risk from Geopolitical Shocks