Delta Corp Ltd, Goa’s largest casino operator, has deferred its plan of setting up a mega-resort-cum-gaming project in Dhargal. The project which was to come up in Pernem Taluka having an employment potential of 4573 jobs, has been put off on receiving a huge GST notice of Rs 23,204 crores.
The casino operator has said that they have decided to look for growth opportunities in the real estate sector after its flagship project at Dhargalim, Goa has been deferred.
After a meeting of the Board of Directors, the decision to put the project on hold was conveyed on November 30th to the National Stock Exchange the Bombay Stock Exchange.
The change in Delta Corp’s plan is expected to have a significant impact on Goa, as the project worth around 3000 crores was the largest investment proposal cleared by the Goa Investment Promotion and Facilitation Board in the last two to three years. The project was considered as the focal point of the IPB’s investment proposals for creating future jobs and fulfilling the State government’s promise of 50,000 jobs.
The integrated project by Delta Corp was proposed to have hotels, a convention centre, a multiplex cinema, a mall, an electronic casino, a water park, banquet facilities and children’s entertainment area.
The company had said the project was to be completed in 2027 which promised to boost tourism, employment and infrastructure in the State; while receiving approval from the IPB.
The company submitted the project application on December 12, 2019 and received IPB approval on January 7, 2022.
The project received environment clearance from the Goa State Environment Impact Assessment Authority in August 2023.
There are five casinos in the state by Delta Corp Ltd. Deltin Jaqk, Deltin Royale and Kings Casino Flotel which are floating casinos; and Deltin Suites, Nerul and the Deltin Zuri which are on land.
Now the company has decided to focus on expanding its real estate sector while proposing to execute projects mainly in Mumbai and Goa.
After its 50th meeting in July this year, the GST Council decided to impose 28% tax on online gaming, casino and horse racing on the full face value of bets despite protests from the gaming and casino industry.
In September, the Directorate General of GST Intelligence, Hyderabad issued three separate notices on Delta Corp and its subsidiaries for Rs 16,281 crores.
Subsequently in October two more tax notices of Rs 6,236.8 crore and Rs 147.5 crore were served on other subsidiaries of the company by the Directorate General of GST Intelligence, Kolkata.
Meanwhile, Delta Corp has petitioned the court against all the GST notices and is awaiting decision on the same.
