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Goa Casinos To Pay Annual Recurring Fees For COVID-19 Shutdown Period Casino
Amarylisa Gonsalves
Posted on 15 Dec, 2022
By Amarylisa Gonsalves
On 15 Dec, 2022
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By Amarylisa Gonsalves
On 15 Dec, 2022
Share

Goa Casinos To Pay Annual Recurring Fees For COVID-19 Shutdown Period


As per the latest news update on Goa casinos, the Goa Bench of the Bombay High Court has directed the casinos, including the ones owned by Delta Corp, to pay the Annual Recurring Fees (ARF) for the period when the business was shut due to COVID-19 pandemic. Petitions were filed by Delta Corp Limited along with its subsidiaries, which operate Deltin Royale, Deltin Jaqk, Deltin Suites and Kings Casino in Goa, and other casino companies with an aim of seeking relief from the payment of Annual Recurring Fees (ARF). This plea was rejected by the Goa Bence, which consisted of Justices Bharat P. Deshpande and MS Sonak. 

The casino companies relied on the judgments of Madras and Delhi High Courts. Through their senior counsels, Dr. Abhishek Manu Singhvi, Darius Khambhata, Nikhil Sakhardande, and advocate Parag Rao, the casino operators argued that charging ARF during the COVID-19 shutdown period was ‘arbitrary and unreasonable.’ 

The companies also argued that there is a distinction between the levy of tax and charging fee that has been imposed for services rendered. They additionally said that apart from the license fees payable during the pandemic period, the imposition of 12% penal interest during the COVID-19 period was also irrational. 

DJ Pangam, the Advocate General of Goa, opposed the interim relief, while noting that casinos had been granted an extension in payment of license fees since they were shut during the COVID-19 period. He further added that a notification dated 25th November 2022, requested the casinos to pay license fees during the said period. 


ALSO READ: Goa casinos to get a waiver of INR 227 crore


In its order, the court referred to a previous Supreme Court decision, and noted that the difference between taxes and fees has been misunderstood to a great extent in the recent jurisprudence. Similarly, an element of quid pro quo is not required for the imposition of a fee by the state government.

The bench also highlighted that a relief for non-payment of license fees was also not granted to bars and restaurants in Goa during the COVID-19 period. The court stated that the petitioners, cannot avoid paying the ARF even for the period of lockdown as the same relief was not granted to the bars and restaurants in Goa.

However, the court noted that the order for 12% penal interest on ARF put forth by the state government was unjustified and hence scrapped the penal interest on ARF for the COVID-19 shutdown period.

The Goa Bench has directed the state government to file its reply to the court within eight weeks. The division bench further added that it will again look into the ‘unreasonableness and arbitrary imposition of ARF’ on the casino operators as the final hearing is still pending.

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