Kathmandu: A fierce battle between an American operator and an Indian national for the ownership of Nepal's Rs. 100 crore casino business has reached a turning point with the government recognizing the claim of the South Asian investor.

Indian national Rakesh Wadhwa, who controls three of the eight casinos in Nepal, has claimed that he is the real investor in the lucrative industry and his newly opened company, Cannosa Investment (Regd No. 1107832) in Hong Kong, is the foreign investor in the casinos operating in the Himalayan nation.

Now, the Nepal Government has issued a letter recognizing Wadhwa's claim to be the real investor in the country's casino industry, which is crucial to the Himalayan nation's tourism sector. However, US citizen, R D Tuttle, who controls five casinos in Nepal, claims that Wadhwa has no shares in the business and he will challenge the government's decision in court to recognize the new Cannosa opened by Wadhwa.

The old Cannosa (Regd. No. 246260), dissolved some 10 years ago, was revived by a Hong Kong court decision but with the order to change the name.

Issuing a notice in major newspapers today, chartered accountant Wadhwa claimed that he has reconstituted the board of Nepal Recreation Centre (NRC), the managing company of all casinos in the country, and expelled Tuttle from the board of directors. Shanti Chadha is the chairperson of the centre, according to the notice.

Casino King Tuttle, chairperson of another NRC, however, says that none of the four nominees of Wadhwa's board are shareholders and they do not have any investment in the casino business in Nepal.

Source : PTI