Bombay High Court Rejects Plea of Goa Casino Operators to Waive Outstanding License Fee of ₹321 Crores For the COVID-19 Lockdown Period

Goa Casinos
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  • Attreyee Khasnabis April 7, 2023
  • 3 Minutes Read

On Thursday, the Bombay High Court in Goa dismissed the petitions filed by casino companies, challenging a government directive requiring them to pay outstanding license fees for the period during the COVID-19 lockdown when all casino establishments were ordered to shut down. The court ruled that the companies are not entitled to any concessions that may have been offered to small shopkeepers.

Additionally, the casino operators were initially asked to pay a 12% penal interest on the overdue payment, but this was subsequently rescinded. According to the Goa government, the casinos have outstanding dues of ₹321 Crores.

In its order, the bench of Justices M S Sonak and Valmiki Sa Menezes dismissed the plea for temporary relief by casino operators, citing the lack of precedent for such relief during the lockdown period. The bench said seeking concessions is neither reasonable nor a legitimate expectation. “The doctrine of equality in [Constitution]’s Article 14 does not require the State to treat all alike. Only the like must be treated alike.”

The bench said the government’s position in a welfare state is comparable to that of parents. “In distressed situations, the parents must take several measures to make ends meet. For example, parents may have to make additional provisions to provide milk to the youngest or the most vulnerable, whose survival may be at stake. The elder or the robust siblings made to pull on without milk for some days cannot complain of hostile discrimination.”

The court said if the state did not insist on the fee’s recovery, the burden would pass on to the honest taxpayers. “….[The taxpayers] would have to pay more for those in need, who would receive proportionately less welfare and development.”

The court also pointed out that it is unreasonable to expect taxpayers to subsidize these non-commercial activities and that it is equally unlikely for the casino operators to be granted a waiver of ₹321 Crores during such difficult times. The court emphasized the need for all businesses, including casinos, to fulfill their financial obligations to the government, especially during a crisis when the government requires additional resources to address the pandemic’s impact.

“A writ Court exercising extraordinary and equitable jurisdiction cannot assist the petitioners’ attempt and deprive the State of its legitimate revenue of almost Rs 321 crores for parting with its exclusive privilege. Moreover, any financial relief to the petitioners in such tragic circumstances would be at the cost of taxpayers, many of whom were also seriously affected by the national disaster. This figure is very high for a small State like Goa, which is reeling under severe fiscal debt,” the High Court bench said.

In December last year, Delta Corp took legal action against the Goa government’s decision to demand payment of license fees for the COVID-19 lockdown period. The government had requested offshore casinos, including Delta Corp, to pay the outstanding fees for the periods during the 2020 and 2021 lockdowns, along with interest.

Delta Corp and other casino operators filed a petition seeking interim relief from paying the fees during the lockdown period. However, the court denied their request, which upheld the government’s directive to collect the fees.

The bench also noted that the court had not granted relief to bars and restaurants in Goa regarding the payment of license fees during the pandemic.

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