Trade union leaders urge casino owner to clear dues

According to staff at Casino Nepal, they haven’t received their salaries for the last three months

SANGAM PRASAIN

KATHMANDU, FEB 15 -

With government action against non-paying casinos looking imminent, trade unions of Casino Nepal have begun efforts to persuade owner of Nepal Recreation Centre (NRC) Rakesh Wadhwa to clear the outstanding dues.

The Department of Revenue Investigation (DRI) has recommended to the Tourism Ministry that the licenses of eight casinos defaulting on royalty payments be cancelled.

Sources said the presidents of four trade unions at Casino Nepal held discussions with Wadhwa in New Delhi, India, on Monday. “With the government looking firm to take action against us, we’ve initiated this move,” said a trade union official at Casino Nepal. Along with the four union chiefs, two members of the management of Casino Nepal had travelled to New Delhi on Sunday.

Wadhwa’s NRC currently runs four casinos in Nepal. Of them, Casino Everest and Casino Tara have been given a clean chit by the DRI. However, his two other casinos—Casino Nepal and Casino Anna—haven’t paid any royalty or dues for the last few years despite constant government pressure. These two casinos owe the government Rs 244 million.

Wadhwa, who has been on the dodge since the police issued an arrest warrant against him, is planning to settle in New Delhi, according to his close confidant. Wadhwa’s continuous defiance of government orders has pushed his casinos to the verge of closure. He has so far refused to clear the outstanding royalties and instead said that the hotels where his casinos are housed should pay them. With the government tightening the screw on him, Wadhwa recently sold 50 percent of his stake in Casino Anna to two Indian buyers.

After the DRI’s letter recommending action against the eight casinos, leaders of their trade unions have been lobbying with government officials and lawmakers to delay legal proceedings against them. Trade union representatives met with Public Accounts Committee (PAC) member Usha Gurung, tourism secretary Kishore Thapa and revenue secretary Krishna Hari Banskota on Sunday.

“We’ll lead the initiation to pressure Wadhwa to clear the dues, let the government hold the action for a few days,” said one leader.

According to staff at Casino Nepal, they haven’t received their salaries for the last three months. “Neither have we got our salaries nor has our management deposited our provident fund of the last 29 months,” said one employee.

As per the Finance Bill, casinos that fail to clear their royalties by mid-January will lose their operating licenses. A gambling house that loses its license will have to start afresh to obtain a new one. The government has made it mandatory for casinos to get their operating licenses renewed annually.

The Tourism Ministry has said that it would initiate action against the casinos as per the directives of PAC which instructed the government on Dec. 28 to scrap the operating licenses of casinos that fail to clear their dues within 35 days.

The DRI, in line with PAC’s directive, had issued a strong notice to all the defaulting casinos telling them to either clear their dues or face cancellation of their operating licenses.