The government on Friday responded to the move to reintroduce the Mizoram lottery in Kerala, with Finance Minister T.M. Thomas Isaac holding out the threat of a heavy crackdown on unauthorised sale of lotteries.
The Minister told a press conference here on Friday that the government had come to know of the move to promote the Mizoram lottery only through a newspaper advertisement.
“There has been no intimation from the Mizoram government as mandated by the Central law. The police will be asked to investigate and identify the elements behind the operation. Criminal procedures will be initiated against the perpetrators and tickets of unauthorised lotteries will be confiscated,” Dr. Isaac said.
The Minister said the Mizoram government would be sounded for its response to the move to sell tickets of their lottery in Kerala. The issue would also be brought to the notice of the Central government. Sole ticket agents of the Kerala Lottery faced cancellation of registration if they were found trying to sell other lotteries.
Dr. Isaac said lottery businessman Santiago Martin was suspected to be behind the move to introduce Mizoram lottery tickets in Kerala in the wake of the introduction of GST.
“The Lotteries (Regulation) Rules 2010 stipulate that the State where the tickets are being sold is duly informed of marketing arrangements and details of the printing, distribution, and sale of lotteries. This has not been done and hence constitutes a violation of the law,” he said.
Meanwhile, the government had issued a notification making it mandatory under the Kerala GST Ordinance for lottery distributors and agents to file information return before the Taxes Department. They will be required to provide details regarding the lottery tickets supplied by them, the draw of lotteries and unsold tickets and produce the tickets for verification.
Dr. Isaac said the GST rate of 28% on other-State lotteries was expected to make their sale unviable. “To remain in business, they would have to resort to tax evasion or deny prizes to customers. The notification is intended to deter any such illegality,” he said.
Pointing out that the entire proceeds from the Kerala lottery would be utilised to provide affordable health care for the masses, he urged citizens to boycott profit- driven private lotteries from other States.
Oppn cries foul
Leader of the Opposition Ramesh Chennithala alleged that the LDF government was abetting the return of other-State lotteries. Pointing out that the CPI(M) mouth piece had carried the advertisement of the Mizoram lottery, he said it exposed the deep nexus between the ruling party and the lottery racket.
Mr. Chennithala said the Finance Minister’s threat of a crackdown against other- State lotteries was aimed at hoodwinking the public.
