The Hindu Business Line : Kerala Govt charges unfounded: Lottery traders

THE All-India Federation of Lottery Trade and Allied Industries (AIFLTAI) on Tuesday said the Kerala Government was trying to regulate other State lotteries because of their `competitiveness', and allegations of irregularities in their sales were unfounded.

According to Mr B. Zaidi, Legal Advisor to the Federation, the sale of other State lotteries in Kerala generates direct employment to over 5,000 people in the State. They also paid a sales tax of Rs 20 crore to Kerala, he claimed at a press conference here.

The State Government had moved the High Court and got a stay on the sales of other State lotteries, many of them online. Following this, all the online lottery terminals were banned in the State. However, the Supreme Court recently vacated the High Court stay and allowed the sale of other State lotteries in Kerala.

Mr Zaidi said other State lotteries distributed over Rs 105 crore in Kerala as prize money last year and the State had six jackpot winners. ``Not a single FIR was filed against any lottery,'' he claimed.

He said annual sales of lotteries in Kerala amounted to Rs 120 crore, compared to Rs 20,000 crore turnover at the national level. There are about 1,500 terminals operating in Kerala, selling online lotteries.

Mr Zaidi said that though the State Government had floated a tender to conduct online lottery, there were no takers because of the `unviable business propositions'. Kerala is also free to sell its lotteries in other States as per the Lotteries (Regulation) Act 1998.

As per the Act, once a State decides to organise its own lotteries, it cannot object to other State lotteries. If it wants to ban other lotteries from selling within the State, it has to stop selling its own lottery as well, Mr Zaidi said.

Currently, 13 states in India sell lotteries, including online and paper.

PTI adds: A Division Bench of the Kerala High Court today directed the Centre, Kerala and Meghalaya Governments to pay Rs 5000 each as cost for failing to file counter affidavits in a lottery case.

The court had on March 9 granted eight weeks' time to them to file counter affidavits in a writ by S. Umesh and R. Ganesh seeking prohibition of single digit lotteries, sold and distributed by the Meghalaya Government.

When the case was taken up the same day, the Union Government was directed to state the action it initiated on the report submitted by the State Government for banning the lotteries of other States.

When the case was taken up today, all the respondents sought extension of time for filing counter affidavits.

The Chief Justice, Mr N.K. Sodhi, and Mr Justice P.R. Raman observed that there was no justification for giving any further time. However, one more opportunity was given by the bench subject to the payment of Rs 5,000 by the respondents.

While the State Government and the Lotteries Director have been asked to pay Rs 5,000 totally, the Centre and the Meghalaya Government have been asked to pay Rs 5,000 each.

The bench also directed that the amount be paid by the officer responsible for preparing counter affidavits and it should not be debited to State exchequer.