On Tuesday, Sporta Technologies, the parent company of Dream11, lodged an appeal with the National Company Law Appellate Tribunal (NCLAT) in Delhi, challenging the National Company Law Tribunal (NCLT) Mumbai s recent decision to accept an insolvency petition. The insolvency petition, filed by Reward Solutions resolution professional, alleged that Sporta Technologies defaulted on dues amounting to Rs 7.61 crore. I
With the increasing number of users on the Dream11 platform, the company achieved several other milestones. In 2020, it secured the sponsorship rights for the IPL, and currently, it holds the sponsorship for the Indian cricket team jersey as well.
Dream11 s auditor SR Batliboi & Co, an affiliate of EY, said the notices issued to the company by GST authorities seeking more than Rs 28,000 crore in past tax dues “may cast significant doubt on the groups ability to continue as a going concern”.
While online gaming firms might be able to absorb a portion of the higher tax rates, the challenge lies in retaining users while passing on some of the tax burden to them