Kerala - Thiruvananthapuram   

Isaac optimistic about outcome of lottery cases

THIRUVANANTHAPURAM: Finance Minister T.M. Thomas Isaac has expressed optimism about the progress of the cases being fought by the State Government in the Supreme Court against violation of Central and State lottery laws by agents of other States’ lotteries and to secure legal sanction for stern measures to check the illegal activities in the lottery scene.

Responding to a calling attention motion moved by Joseph M. Puthussery (KC-M) in the Assembly on Friday, Dr. Isaac said the petition filed by the State Government before the Supreme Court seeking the power to act against violation of Section 4 of the Central Lottery Regulation Act to which the Kerala Tax on Paper Lotteries Act is incorporated.

The case was listed for October and would be heard by a three-member bench headed by Chief Justice K.G. Balakrishnan, he said.

Dr. Isaac said that as a result of persistent efforts by the Kerala Government over the last one year, the Central Government too had come round to the view that though the State did not have the authority to cancel the registration certificates of other States’ lotteries, it could take action if there was violation of the laws. In another positive development, the Supreme Court also consented to tagging of the case relating to paper lotteries to that relating to paper lotteries, the Finance Minister said.

He said the State Government had nothing against sale of other States’ lotteries in Kerala and its opposition was only in violation of Section 4 of the Central Lottery Regulation Act.

The Government has not cancelled the registration of the lottery sellers and, as a result, there was rampant violation of the Central Act.

The State Lotteries Department had estimated receivables by way of tax between Rs.5,000 and Rs.8,000 crore under Section 5 (b) (a) of the Kerala General Sales Act.

But the Supreme Court had in the meanwhile ruled that sales tax could not be levied on lotteries as lottery is not a commodity. Although the State Government had taken the position that the court verdict had only prospective validity, the court had clarified that though it need not refund any tax it may have collected, it cannot collect sales tax on lottery in future. The State Government did file a petition questioning this position, but the Supreme Court had refused to even entertain it.

The Government is consulting legal experts on seeking a review on the Supreme Court verdict.

As for question why the State Government could not withdraw the affidavit filed before the Court stating that the State Government would not initiate further action for violation of Section 4 of Lotteries Regulation Act, the advice that the State Government was that it cannot withdraw the affidavit, but it could argue its position at the time of hearing, the Finance Minister said.

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