The Hindu : Kerala News : Government favouring online lottery companies: VS

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Monday, Apr 05, 2004

Kerala

Kerala

Government favouring online lottery companies: VS

By Our Special Correspondent

THIRUVANANTHAPURAM, APRIL 4. The Leader of the Opposition, V. S. Achuthanandan, today said the developments connected with the online lottery cases clearly exposed the Antony Government's desire to favour the online lottery companies, even at the cost of revenue worth several crores of rupees.

At a press conference here today, he alleged that a big drama was being enacted in the High Court with the Government advocates allowing online lottery cases to go uncontested at crucial moments of the courtroom proceedings. One of the Government advocates, Ajith Prakash, who had tried to protect the State's interests, had now been terminated from service because his stand did not suit the designs of those who wanted to help the online lottery companies, he said.

Mr. Achuthanandan said the arguments on online lottery cases had been postponed 16 times since January 20 by the court. This would not have happened unless the Government advocates were hand-in-glove with the companies in thwarting the administration of justice, he alleged.

He said that crores of rupees were being siphoned off the State by these companies, who were not even willing to pay taxes to the Government. A Government report on the topic itself had mentioned that "more than 15 lakh people in the State are being defrauded of their hard-earned money on a daily basis by these companies".

A report by the Finance Secretary, the Taxes Secretary and the Lottery Director had drawn the Government's attention to the failure of the office of the Advocate General (AG) in protecting the State's interests in the lottery cases now before the High Court. This report and the subsequent developments in the court should have been enough to prompt the Government to change the AG. The Government's disinclination to do so clearly showed that the AG was but carrying out instructions from those who controlled the affairs of the Government, he alleged.

Mr. Achuthanandan said that when the online lottery companies had filed a case in the High Court challenging a notice issued by the Government for the remittance of Rs. 895 crores by way of tax arrears for two years, it was not defended properly by the Government advocate concerned. The Government advocate did not even ask the court to order them to pay at least a portion of the tax arrears due. The companies then filed another case saying that they were not bound to pay the Government the revised licence fee fixed for them with effect from April 1.

The Government advocates had failed to defend this case also properly in the court, allowing the companies to win a favourable verdict, he said.

Mr. Achuthanandan said that yet another case was now before the court, with the online lottery companies contending that the Government had absolutely no right to impose levy on lotteries.

The companies were now out to recover even the negligible amounts they had remitted as various levies to the Government in the past. "They got favourable stay orders from the court in 18 cases so far. Has the AG's office succeeded in protecting the Government's interest in any of these cases?" he asked.

"On the one side, the State was passing through one of the worst droughts in recent years and the Government finding it difficult to provide farmers the much-needed relief due its financial difficulties. On the other side, the Government was letting go huge sums of money as revenue due from the online lottery companies because the Ministers have been fully bought over by these companies," Mr. Achuthanandan added.

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