The Hindu : Kerala News : `Government will fight online lottery case to the end'

Online edition of India's National Newspaper
Tuesday, Apr 06, 2004

Kerala

Kerala

`Government will fight online lottery case to the end'

By Our Special Correspondent

THIRUVANANTHAPURAM, APRIL 5. The Finance Minister, K Sankaranarayanan, has said that the State Government was committed to fighting the online lottery case to its inevitable end so that it would be able to realise the tax revenue dues under this head.

In a sharp denial of allegations that the Government was going soft on the online lottery companies in the case in the High Court, the Finance Minister, in a statement here today, said that it was the Kerala Government that had first discovered that the lottery companies based outside the State were functioning in violation of the Central Act. It had issued public warnings against these companies. In the online lottery case, the High Court had found that the Government had acted as per the existing provisions. The High Court Division Bench has posted the writ appeal filed by these companies to April 6 for final orders. From this, it is very clear that the Government had never taken any soft stand towards the online lottery companies.

Mr. Sankaranarayanan said that the State Government had informed the Centre in detail vide its letter dated January 12, 2004, about the online companies' illegal activities in Kerala. Following this, the counsel for the Central Government had, in his affidavit before the High Court Division Bench, informed it that the Centre had taken the issue seriously and had given notice to all State Governments concerned. This also showed that the allegations are baseless, he said.

The Government had given clear directions to the Advocate General to conduct the case in the High Court on the basis of the recommendations of the Lottery Director that the AG should himself appear on its behalf and protect its interests. The Advocate General has been personally handling the case. "The State Government is not concerned about the way the Advocate General conducts the case and which Government Pleader's assistance he seeks. He has been informing the Government the progress in the case," Mr Sankaranarayanan said, reiterating the Government's commitment.

The Government, he said, was examining the charge that the law firm owned by the Advocate General had taken up the case on behalf of the lottery company after the matter was brought to its notice.

Mr. Sankaranarayanan said that the Government had shown diligence in collecting tax revenue due to the exchequer. He said the Government had earlier clarified that there was no basis for the allegation that the Special Government Pleader had agreed in court that the Government would give more time to an online lottery company which owed it Rs. 895 crores as tax to pay the dues. The Government had also clarified that the Government had served only a preliminary notice for tax assessment to the company concerned. It was obvious that the Government could recover the tax amount only after the company replied to its notice, the tax liability was fixed and the demand was mounted, he pointed out.

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