A Delhi based businessman, Rakesh Wadhwa, has won a legal battle fought in Hong Kong and Nepal and got the control over Nepal’s casino. He defeated his American partner in the same business. The fight was for the control over Nepal’s eight casinos. He acquired 80 percent shares in the Nepal Recreation Center (NRC) that owns the casino chain in Nepal.
A Hong Kong based company, Cannosa, owns the NRC and Wadhwa had 12.5 % shares in that company. His American partner, Richard D Tuttle had 11.5% shares in Cannosa. Earlier, Wadhwa and his wife managed three of the eight casinos in Kathmandu. Tuttle was managing rest of the five.
After Maoists insurgency hit to the routine life and business in Kathmandu the casino business went into problems. The negative profits, mismanagement of funds, royalty payment to government and millions of payment to employees for their provident funds made the casino business of loss.
Tuttle had sold his shares in 1990 and the Hong Kong based company Cannosa had been deregistered by Hong Kong authority. After that, Nepal’s department of commerce industries and supplies ordered the immigration authorities to investigate Tuttle’s residential documents and to cancel his visa.
Wadhwa swung in action when he came to know the developments and he started searching for the shares Tuttle sold in 1990 in Hong Kong. He found that another Hong Kong-registered company Dartford has bought the shares. Then, Wadhwa bought back the shares that was sold to Dartford by Turtle and filed a petition to own Cannosa by fresh registration.
Now, Wadhwa has 99 % shares with him and he has become the major share owner of NRC. He is now the crown of Nepal’s casino kingdom. The casino network in Nepal is major attraction point of Indian tourists. Seven of the casinos are in Kathmandu and one in Pokhra.
Via: TOI
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