Kathmandu: An American businessman has won a legal battle against an Indian citizen over the control of Nepal's lucrative casino industry.

In a setback to Indian businessman Rakesh Wadhwa, Nepalese Supreme Court has recognised American citizen R D Tuttle as the chairman of Nepal Recreation Centre (NRC) that manages eight casinos in the Himalayan nation.

The Supreme Court has said that the current managing committee of NRC headed by Wadhwa was illegal and ordered that the former board wherein Tuttle was chairman to operate as usual.

The court made void the decision made by the Company Registrar's Office four months ago that removed Tuttle from board giving recognition to the new board formed by Wadhwa, NRC's company Secretary Bharat Shakya said.

The NRC operates eight casinos in Nepal with a combined turnover of Nepalese Rs 4 billion (Rs 251,19,08,020) and employees 7,000 staff. The casinos provide over Rs 12 crore to government in the form of royalty.

However, Tuttle said he would not remove Wadhwa from the board and wants to work with him for the benefit of the company. The old board has Tuttle as chairman and Wadhwa and three other people as members.

Though the Nepalese court has made the decision on the management of the NRC favouring Tuttle, the case regarding who owns the 80 percent share of the casino is still pending in a Hong Kong court.

Tuttle has 20 percent direct shares in the casinos and his claim over 80 percent shares kept as trust in another company Dartford is challenged by Wadhwa.
Source : PTI