NRC given one more week to pay Royalty dues
KATHMANDU, JUN 19 -
Finally, the government has decided to scrap the operating licence of Nepal Recreation Centre (NRC) that runs four casinos in the country if it fails to clear its outstanding royalty dues within a week.
The Ministry of Tourism and Civil Aviation (MoTCA) on Thursday took a decision to this effect.
The ministry, issuing a notice on Saturday, gave the seven-day ultimatum to NRC to clear its dues. According to the notice, if NRC fails to clear the dues within the stipulated time, its operating licence will be cancelled. “Since the licence was issued by the ministry, it will annul the licence if NRC fails to pay its outstanding royalty dues,” said Ranjan Krishna Aryal, joint-secretary at the ministry. The government’s decision has come amid NRC’s repeated refusal to clear the dues. NRC, in a letter to the Department of Revenue Investigation (DRI) two weeks ago, had said hotels housing the casinos should own the responsibility of clearing the royalty dues.
In the letter, NRC had stated that it will only clear dues other than royalty, according to the department. In a bid to persuade NRC to clear its dues, DRI has frozen bank accounts of its two casinos-Casino Everest and Casino Tara-although they have already settled their dues. NRC also said in its letter that DRI can recover dues other than royalty from these two casinos.
Two of the NRC’s casinos-Casino Nepal and Casino Anna-have to pay Rs 130 million and Rs 110 million, respectively, as of now. The government has already frozen NRC’s bank accounts and assets.
With NRC owner Rakesh Wadhwa on the run ever since the government initiated action against his company and not showing interest to pay the dues, the DRI had initiated the auction process for NRC’s property. NRC has around 3.5 ropanies of land and a house in Kalimati.
The Parliament’s Public Accounts Committee (PAC) on Dec. 28, 2010, had directed the government to cancel the licences of casinos failing to clear their dues within 35 days. Only two casinos-Casino Everest and Casino Tara-had cleared their dues when DRI formally wrote to the ministry in this regard. The DRI on Feb. 14 had formally requested the ministry to take against eight casinos failing to clear dues within the stipulated time.
However, four additional casinos—Casino Rad, Casino Venus, Casino Grand and Casino Shangri La—cleared their dues and royalties later. Casino Anna, Casino Royale, Casino Nepal and Casino Fulbari are yet to clear their dues.
With the ministry’s latest decision, NRC’s two other casinos—Casino Everest and Casino Tara—that have already cleared their royalty could also be closed down. With Wadhwa still absconding, Casino Nepal, stationed at Hotel Soaltee Crowne Plaza, has not paid salary to its staff for the last six months. The trade unions at Casino Nepal had tried to persuade Wadhwa to either clear royalty dues or hand over the responsibility of the casino’s operation to its licence holder.
In a bid to regulate and control casinos, the government has finalised a draft amendment to the Gambling Act with provisions of stringent action against Nepalis indulging in gambling in casinos. The draft act, which will replace the Gambling Act-2020, provisions one-year imprisonment to Nepali gamblers.
Until now, Nepalis arrested in casinos can get released by paying a fine of Rs 100. PAC had directed the government to amend the existing Act after a series of cases of Nepalis entering casinos surfaced.
As per the draft act, Nepalis are not allowed in casinos and operators have to keep records of every person entering their casinos for gambling. It has also asked the operators to provide details of losers and winners in casinos.
Source: Kantipur
Finally, the government has decided to scrap the operating licence of Nepal Recreation Centre (NRC) that runs four casinos in the country if it fails to clear its outstanding royalty dues within a week.
The Ministry of Tourism and Civil Aviation (MoTCA) on Thursday took a decision to this effect.
The ministry, issuing a notice on Saturday, gave the seven-day ultimatum to NRC to clear its dues. According to the notice, if NRC fails to clear the dues within the stipulated time, its operating licence will be cancelled. “Since the licence was issued by the ministry, it will annul the licence if NRC fails to pay its outstanding royalty dues,” said Ranjan Krishna Aryal, joint-secretary at the ministry. The government’s decision has come amid NRC’s repeated refusal to clear the dues. NRC, in a letter to the Department of Revenue Investigation (DRI) two weeks ago, had said hotels housing the casinos should own the responsibility of clearing the royalty dues.
In the letter, NRC had stated that it will only clear dues other than royalty, according to the department. In a bid to persuade NRC to clear its dues, DRI has frozen bank accounts of its two casinos-Casino Everest and Casino Tara-although they have already settled their dues. NRC also said in its letter that DRI can recover dues other than royalty from these two casinos.
Two of the NRC’s casinos-Casino Nepal and Casino Anna-have to pay Rs 130 million and Rs 110 million, respectively, as of now. The government has already frozen NRC’s bank accounts and assets.
With NRC owner Rakesh Wadhwa on the run ever since the government initiated action against his company and not showing interest to pay the dues, the DRI had initiated the auction process for NRC’s property. NRC has around 3.5 ropanies of land and a house in Kalimati.
The Parliament’s Public Accounts Committee (PAC) on Dec. 28, 2010, had directed the government to cancel the licences of casinos failing to clear their dues within 35 days. Only two casinos-Casino Everest and Casino Tara-had cleared their dues when DRI formally wrote to the ministry in this regard. The DRI on Feb. 14 had formally requested the ministry to take against eight casinos failing to clear dues within the stipulated time.
However, four additional casinos—Casino Rad, Casino Venus, Casino Grand and Casino Shangri La—cleared their dues and royalties later. Casino Anna, Casino Royale, Casino Nepal and Casino Fulbari are yet to clear their dues.
With the ministry’s latest decision, NRC’s two other casinos—Casino Everest and Casino Tara—that have already cleared their royalty could also be closed down. With Wadhwa still absconding, Casino Nepal, stationed at Hotel Soaltee Crowne Plaza, has not paid salary to its staff for the last six months. The trade unions at Casino Nepal had tried to persuade Wadhwa to either clear royalty dues or hand over the responsibility of the casino’s operation to its licence holder.
In a bid to regulate and control casinos, the government has finalised a draft amendment to the Gambling Act with provisions of stringent action against Nepalis indulging in gambling in casinos. The draft act, which will replace the Gambling Act-2020, provisions one-year imprisonment to Nepali gamblers.
Until now, Nepalis arrested in casinos can get released by paying a fine of Rs 100. PAC had directed the government to amend the existing Act after a series of cases of Nepalis entering casinos surfaced.
As per the draft act, Nepalis are not allowed in casinos and operators have to keep records of every person entering their casinos for gambling. It has also asked the operators to provide details of losers and winners in casinos.
Source: Kantipur
