BANGALORE: The Karnataka High Court on Tuesday, in an interim order, stayed a notification by the State Government banning lotteries.

Justice S. Abdul Nazir passed the orders on petitions by Arunachal Pradesh and the All India Federation of Gaming and Allied Industries challenging the March 27 notification banning the conduct and sale of lotteries in Karnataka.

Appearing for petitioners, senior counsel Soli Sorabjee and B.V. Acharya, said the decision to ban lottery was read out when the State's Budget was presented on March 16. Subsequently, the State issued a notification under the provisions of the Lottery (Regulation) Act on the ban of lotteries. Consequently, the sale of all lotteries — paper, internet and online had been banned.

The petitioners said lakhs of people, including the physically challenged, were dependent on lotteries and the ban would affect their livelihood. Arunachal Pradesh said it was a small State and its main source of revenue was by organising lotteries.

It said a large infrastructure in Bangalore had been set up for distributing lotteries and that it would suffer harm if an interim order staying the notification was not given.

Both the petitioners said the notification was illegal and that it violated Articles 14, 301 and 304 of the Constitution

Justice Nazir stayed the notification banning lotteries and ordered issue of notices to the Union and State governments.

He permitted the State to seek vacation of the stay order and adjourned further hearing on the case.

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