The Hindu : HC adjourns Meghalaya Govt.'s petition

Online edition of India's National Newspaper
Friday, Nov 28, 2003

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HC adjourns Meghalaya Govt.'s petition

By K. C. Gopakumar

KOCHI Nov. 27. The Kerala High Court today adjourned to Friday the writ petition filed by the Meghalaya Government and the Federation of Lotteries, Trade and Allied Industries, New Delhi challenging the restrictions imposed by the State Government on the sale of paper and online lotteries of other States.

The petition was adjourned by the Justice C.N. Ramachandran Nair. The petition also challenged the provisions of the Kerala Lotteries and Online Lotteries (Regulations) Rule 2003. The restrictions were imposed on the basis of the rules. According to the petitioners, the order passed by the Kerala Government imposing restrictions on the sale of lotteries conducted by other State Governments was violative of the Lotteries Regulation Act. It also contended that it was beyond legislature's competence of the State as the Central Government had only been vested with the power to regulate and impose restrictions on the sale of lotteries. Besides, it was also violative of Supreme Court's judgment on lotteries.The court had earlier upheld the Rule 24(3) of the Kerala State Lotteries and Online Lotteries (Regulations)Rules 2003 stipulating that prior permission of the State Government be obtained for the sale and marketing of lotteries of other States and the Union Territories. It was upheld while dismissing a batch of writ petition filed by various distributors of paper and online lotteries.

The court had made it clear that lotteries other than the Kerala State lotteries could be sold only after obtaining permission from the Secretary to Taxes Department. The application seeking permission should be submitted before the Taxes Secretary through the Director of Lotteries by the State Government concerned. The secretary after conducting inquiries through the Commercial Taxes Department and hearing the views of the State Governments should issue orders granting approval for marketing their lotteries. The Judge had said that the distributors or wholesale agents could approach the Secretary for permission to continue their business till final orders were passed on the permission applications filed by the State Governments. The Secretary should conduct the inquiry within two weeks and grant permission for the sale of lotteries.

The court had held that the Rule 24 gave authority to the Government to impose restrictions and it is fundamental to protect the people from deceit or fraud.

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