Kerala cannot restrain Sikkim lotteries: SC

Lottery scam-accused allowed to apply for registration

The Supreme Court, while giving permission to lottery scam-accused A. John Kennedy to apply for registration to distribute lotteries under the Kerala Tax on Paper Lotteries Act 2005, has barred the State of Kerala from passing any restraints against the “organising, conduct and promotion” of Sikkim paper lotteries in the State.

The order was issued by a three-judge Bench led by Justice H.L. Dattu. In its July 16 order, Justice Dattu’s Bench had allowed Kennedy to make an appropriate application for registration under 2005 Act for consideration in accordance with law.

It further said the authorities would accept the advance tax paid or payable by Kennedy in case the registration certificate was granted.

CBI case This means that if the government allows Mr. Kennedy's application for registration to distribute lotteries, he can do so in Kerala in spite of a CBI case against him. The court further reasoned that the State of Kerala cannot pass any restraints on anyone distributing paper lotteries of Sikkim as it is not a “lottery free zone”.

“In our considered opinion, since the appellant-State (Kerala) insofar as paper lotteries are concerned, is not a lottery-free zone, the question of State of Kerala prohibiting the State of Sikkim from organising, conducting, or promoting paper lotteries would not arise,” the Bench said.

The order was passed on an appeal filed by the Kerala government against the State's High Court decision to quash a show cause notice issued by the Assistant Commissioner, Commercial Taxes, Palakkad, against Kennedy.