Shares of the Indian gaming company Delta Corp hit a 52-week low on September 25 after investors reacted to the company receiving a huge tax notice for July 2017 and March 2022. 

Delta Corp shares hit a 20% lower circuit during the early opening hours on Monday to reach a 52-week low of Rs 140.35. At 11:50 am, shares of the company were trading at Rs 144.55, down nearly 17.6% from the last closing price on the National Stock Exchange (NSE). 

In two exchange filings dated September 22, the casino operator said that it had received notices from the Directorate General of GST Intelligence, Hyderabad, for the payment of shortfall Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) along with interest and penalty. 

The company was advised to pay an alleged tax liability of Rs 11,139.61 crore along with interest and penalty from July 2017 to March 2022. Among its subsidiaries, Casino Deltin Denzong Sikkim received a tax due notice of Rs 628.20 crore, Highstreet Cruises and Entertainment was ordered to pay Rs 3,289.94 crore, and Delta Pleasure Cruise Company must pay Rs 1,765.21 in unpaid tax dues. 

The claim amount is based on the gross bet value of all games played at the casinos during the period. The total tax due of the DG notices received by the company and its subsidiaries amounted to Rs 16,822.97 crore. The total claim by the tax department is more than 3.5 times Delta Corp’s last closing market cap.