Tarnishing Image Of Nepal
Rakesh Wadhwa’s efforts to control NepalRecreationCenter(NRC) and casinos by using every mean has damaged the image of Nepal in the tourism sector
By A CORRESPONDENT
At a time when Nepal’s tourism industry is gradually recovering after years of insurgency and bad publicity generated by the hijacking of Indian Airlines plane some time back, a new row over the ownership of NRC schemed by Rakesh Wadhwa, an Indian citizen, has started tarnishing the image of Nepal again. For Wadhwa, it is said, who also holds some shares in casinos in the Indian state of Goa, disputes in Nepal’s casino industry will not affect him adversely but it will vigorously damage the tourism industry in Nepal.
Although all the legal documents show that R.D. Tuttle is still chairman of NRC and he holds majority shares, Wadwha is now trying to mislead claming that he is the real majority stake holder in the NRC. The row has put Richard D. Tuttle, who has made major contributions to modernizing casinos and promoting casino tourism in Nepal since 1976, under unnecessary stress.
Since his arrival in Nepal, he has been publishing a number of magazines to promote tourism in this part of the world. In the fight Wadhwa has nothing to lose. For the people of Nepal, any disturbance in casino will be a major loss in terms of revenue generation and employment opportunities to poor Nepalis. The casino generates millions of rupees of revenue to the government and provides employment to more than 15,000 poor Nepalis. The recently published article in Times Network, The Times of India’s news agency, manifested Wadhwa’s sinister interest.
“Rakesh Wadhwa, a finance whiz from Delhi who operated casinos in Sri Lanka before they were closed by the government, holds stakes in a group of floating casinos in Goa, is the majority stake holder of NRC,” writes the Times Network.
If Nepal’s casinos are involved in unnecessary rows of such kinds for a longer period, the tourists coming to Nepal for recreation will be diverted to new destinations, which will ruin Nepali industry that has been nurtured through the efforts of more than three decades of R.D. Tuttle.
For the promotion of casino industry in Nepal, no one can deny the important role played by Tuttle. When Tuttle took over the control of casinos in Nepal, they were very much in initial stage. The investment made by Tuttle has transformed them and their infrastructures have been completely modernized.
Tuttle - who has been running the casinos and making unprecedented improvements at par with international standard- worries that it could have a very bad impact on Nepal’s overall tourism and may discourage investors from coming into Nepal.
The unsavory tactics used by Wadhwa to prove his imaginary claims must be brought to the notice of all concerned and the local government. His dispute with Tuttle started following his attempts to control NRC through registering companies in Nepal and Hong Kong under the same banner owned by R.D Tuttle.
In legal terms, NRC is still owned by a Hong Kong Registered Company, Cannosa - which owns 80 percent of shares of NRC, a company of which R.D. Tuttle is the founder and promoter.
The Declaration of Trust signed in Hong Kong, under the Dartford Limited of 701-02 Commercial House, 35 Queen’s Road Central, in February 1990, states: ”I/we Dartford Limited (hereinafter called “the trustee”) hold the shares specified in the schedule hereto and all dividends and interest accrued or to accrue upon the same, including bonus rights and other privileges arising from such share or any of them, upon trust for Mr. Richard D. Tuttle of Soaltee Oberoi, Kathmandu Nepal (hereinafter called “the Beneficiary”) and herby agree to transfer, pay deal with the said shares and the dividends payable in respect thereof any bonus rights and privileges arising therefrom in such manner as the beneficiary shall from time to time direct.” According to Trust, Cannosa Investment Limited has eighty-seven thousand four hundred ordinary shares of HK$ 10.00 each and Tuttle is the ultimate beneficiary.
To stake control of the NRC, Wadhwa registered a new company in the name of Cannosa in Hong Kong with 99 percent shares with him recently. This itself exposes his foul intentions to embarrass Tuttle. Although the case regarding the Cannosa is still pending in Hong Kong Court, Wadhwa claims his newly registered company to be the genuine one.
According to Hong Kong Government Act, all property and rights whatsoever vested in or held on trust for the company immediately before its dissolution belongs to the government. Nepal’s continuous political instability and traditional legal system have discouraged overseas investors particularly from the west to invest in Nepal.
The recent efforts to harass Tuttle, an American investor pioneering in modernizing tourism business in Nepal, may further aggravate or discourage prospective investors to come to Nepal. So far the imaginary claim of Wadhwa about controlling all the shares of NRC is concerned, it could not be possible because as there are other shareholders as well.
Under the permission granted from the Department of Industries as per the company act 2049, consent has been given to transfer 600 numbers of shares Rs. 1,000 to 600,000 to the American national Mr. Henary Howard Tuttle out of Mr R.D. Tuttle’s shares on May 7 1998. Similarly, in April 1996, R.D Tuttle bought Purushottam S. Rana’s 8000 shares and Manjari Ghosh’s 7000 shares of Rs.1000 each under the approval of Department of Industries on condition to invest in convertible currency in favor of a Nepali investor.
Under the same token, 1000 shares amounting to Rs.10 lakhs belonging to Mrs. Uraiwan Jozef Tuttle were also transferred. Even on June 13, 2007, R.D. Tuttle, Chairman of Nepal Recreation Center, chaired the meeting of the board of directors inviting the board directors Bonnie June, Ketsarin Singnark, Sirphorn Kaosoo and Rakesh Wadhwa.
All the documents show that legally R.D. Tuttle still is chairman of NRC with all the shares under his possession. So far the issues of Cannosa Investment Limited are concerned, the case is pending in the Hong Kong Court. Wadhwa has already launched propaganda war against Tuttle, who till now has been silently watching the developments.
Wadhwa also tried to sully Tuttle’s image by publishing newsletters indicting him for his mismanaging the casinos.After modernizing and successfully operating casinos for more than three decades, Tuttle, chairman of Board of Director of Nepal Recreation Center (NRC), which runs eight casinos in Nepal, has been unnecessarily embroiled in baseless rumors of mismanagement by his former manager Wadhwa, who is now claming to be the legitimate owner of the NRC.
”Disputes are normal in business. There are disputes between families, fathers and sons and partners. But I have not seen such situation in business disputes and that, too, by a person who worked as a good manager for a long time,” said a close aid of Tuttle. He further added that , “it can be compared to a situation where the invited guest tries to push out the owner of the house.”
It may not be irrelevant to bring to the notice of the public that some time back Wadhwa’s casino in Sri Lanka was closed by the government when it came to know that Wadhwa had been secretly funding the Liberation of Tamil Tiger Ealem (LTTE). For the past few years following his eviction from Sri Lanka, Wadhwa worked as a manager of Tuttle’s NRC where he is still a member of Board of Director.
“This is no good for the country, casino industry and foreign investment in Nepal . These kinds of disputes will tarnish the image of Nepal ,” said Tuttle’s aid. The dispute has to be settled justifiably without delay after the court in Hong Kong gives its final verdict.
