Kerala HC allows sale of other state lotteries

The Kerala high court today permitted other states to sell their lotteries in Kerala, provided they had remitted sales tax prior to the lottery ban of January 27.

The court also allowed them to conduct the draw of lotteries on the scheduled dates. By this order, other states can operate their lotteries till the period for which the tax has been paid.

A division bench, comprising chief justice B Subashan Reddy and A K Basheer, while disposing off writ appeals filed by the state of Nagaland and B S Enterprises, Palakkad, held that lotteries which hold certification for the payment of sales tax as on Jan 27 shall be treated as valid for sale and also for draw even after this date.

The government order, imposing a ban on lotteries, operate prospectively only from Jan 27 and no lottery tickets can be presented for sales tax certification after that date, the court held.

This order virtually allows other state lotteries to operate in Kerala, while the ban imposed by the government will affect the sale and draw of Kerala state lotteries only.

Kerala had banned all lotteries, including the one run by the state government, following a Supreme Court order.

The decision comes in the wake of the apex court's stay on the state government's rules banning online and paper lotteries of other states.

Chief minister Oommen Chandy had said the government decided to stop the paper lottery run by the state as it had no other option available. The finance department has been asked to prepare a scheme to rehabilitate the lottery vendors, he added.

Online lottery operators had challenged the state government's move to initiate action against them and illegal paper lotteries run by other states, while allowing the state-run lotteries to continue.

The apex court had also demanded an apology from the state government for initiating action against online lotteries in disregard of the stay order issued by the apex court against such action.