The Hindu : Kerala News : High Court allows sale of some lotteries

Online edition of India's National Newspaper
Friday, Feb 11, 2005

Kerala

Kerala

High Court allows sale of some lotteries

By Our Staff Reporter

KOCHI, FEB.10. A Division Bench of the Kerala High Court today said that lotteries that had paid sales tax as on the date of the lottery ban order could be sold and their draw held on the scheduled dates.

The Bench, comprising the Chief Justice, B. Subhashan Reddy, and Justice A.K. Basheer, issued the direction while disposing of an appeal filed by the State of Nagaland and a petition filed by an agency of the Bhutan and Sikkim lotteries. According to the agency, the sale and draw of lotteries, for which they had paid taxes, could not be conducted on the scheduled dates because of the ban order.

The ban order came into effect on January 27, 2005.

The court had earlier allowed lotteries of other States to be sold and put to draw provided the sales tax had been paid. The court had made it clear that the police could take action if there was any violation of the court order.

Roy Mathew writes from Thiruvananthapuram:

The High Court order permitting dealers of paper lotteries of Meghalaya, Sikkim and Bhutan to sell tickets during the quarter for which they have remitted taxes, gives a free reign to the dealers.

They can sell tickets without any competition from the Kerala State Lotteries for a few weeks to come.

Even if the State Government now issues orders lifting the ban on the State Lotteries — as decided by the Cabinet on Wednesday — it would be another two or three weeks before the State Lotteries Department could print and sell tickets.

The Government has issued orders withdrawing all police cases against dealers, including those pertaining to the period prior to the stay granted by the Supreme Court, freeing them of all legal entanglements.

As of now, the State has no rules governing the sale of lotteries in the State, as the Kerala State Lotteries and Online Lotteries (Regulation) Rules, 2003, were abolished when the Government announced a total ban on lotteries. Though the Rules were under challenge before the Supreme Court, only the validity of the sub-rules (3) and (10) of Rule 24 has been questioned. The Government has the option of reviving the rules without the contested sub-rules.

Though dealers have paid taxes at places such as Palakkad, Chavakkad and Kattappana, officials point out that the accompanying details showed that many of them are illegal under the Central Lotteries (Regulation) Act.

They promise more than one draw a week. Some are effectively single digit lotteries as other digits are predetermined. It is to be seen whether the Government would initiate any action against them.

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