Australia-listed casino operator and developer Silver Heritage Group has settled a legal dispute with its former partner in the Tiger Palace Resort in Bhairahawa, Nepal.
The company told the Australian Securities Exchange that a former consultant to the $52m project, Rajendra Bajgain, and his brother, Nabaraj Bajgain, had sold their shares in SHL Management Services (KTM), a subsidiary which operates Tiger Palace and The Millionaire’s Club and Casino in Kathmandu.
Silver Heritage became embroiled in a legal battle when it terminated its consultancy agreement with Rajendra Bajgain on 22 February, after he alleged that the company was employing 22 foreign staffers at Tiger Palace without the necessary work permits.
Both Silver Heritage’s MD and CEO Mike Bolsover and the company’s then- chairman David Green roundly denied these claims.
In the group’s annual report in March, Green said that Bajgain had “embarked on a series of actions apparently calculated to bring the group into disrepute in Nepal, and to frustrate its operations at Tiger Palace”.
The Bajgain brothers have reportedly sold their stake in SHL to Tiger Kathmandu Investment, a company incorporated in Nepal.
Following the settlement, Tiger Kathmandu now owns a 10 percent of SHL, with the remaining 90 percent owned by Silver Heritage.