A single bench of SC Justice Bal Ram KC stayed the circular issued by the Ministry of Tourism and Civil Aviation (MoTCA), citing the need for comprehensive discussions on the matter before implementing the decision.[break]
Following instructions from the Public Accounts Committee (PAC),MoTCA had issued letters in the names of Casino Nepal and Casino Fulbari asking them to furnish clarifications why their operating licenses should not be scrapped.
The PAC had concluded that the casinos did not clear outstanding royalties and fines despite repeated requests from government agencies.
Casino Nepal belongs to Hotel Soaltee while Casino Fulbari is being operated by Pokhara-based Fulbari Resort. The hotels had filed writ petitions at the apex court claiming that clearing dues is not their responsibility but that of Nepal Recreation Centre.
They had also claimed that the government´s objective in issuing the letters was to ultimately close down the hotels.
"Writ petitioners have raised serious questions in the petition.It seems there is need for comprehensive discussions and study of the matter before implementing MoTCA´s decision. Thus, the bench hereby orders the authorities concerned not to implement the decision until April 10."
The apex court had also summoned government officials and the writ petitioners for the next hearing to be held on April 10. The bench would then decide whether or not to continue the stay order.
PAC had asked the government to take action against casinos defaulting on royalties and taxes, and instructed the government to cancel their operating licenses if they did not settle their dues within a month.
According to the Department of Revenue Investigation (DRI), Casino Nepal has outstanding royalties and fines amounting to Rs 130 million, Casino Anna has such dues of Rs 103 million, Casino Fulbari, Rs 62 million, and Casino Royal, Rs 22 million.
Despite repeated attempts, casinos operated by Nepal Recreation Center (NRC) and others have still not paid their royalties and fines.
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