The court established that licensed bookies must adhere to the terms of their licenses, and allegations of illegal betting and tax evasion can lead to criminal liability under the Karnataka Police Act and the Indian Penal Code, regardless of licensing status.

ORDER

S.Vishwajith Shetty, J.

Accused Nos.1 to 26 are before this Court under Section 482 of Cr.P.C. with a prayer to quash the FIR in Crime No.9/2024 registered by High Grounds Police Station for the offences punishable under Section 78(1)(a)(i) of the Karnataka Police Act, 1963 (hereinafter referred to as 'the Act' for short) Section 12 of Karnataka Race Betting Act and Section 420 of IPC, which is now pending before the Court of I Additional Chief Metropolitan Magistrate, Bengaluru.

2. Heard the learned Senior counsel appearing on behalf of the petitioners and the learned Advocate General appearing on behalf of respondents.

3. Factual matrix of the case are as follows:-

On 12.01.2024 credible information was allegedly received by the first informant, who is a Police Inspector attached to CCB Unit, Special Investigation Squad, Bengaluru City, to the effect that in Bangalore Turf Club, certain bookies, who have been issued license from the State Government were accepting betting on the horse races, without maintaining proper registers, documents etc. with regard to the amount collected by them from the punters and thereby they were evading tax payable to the State and certain others, who had no license from the State Government for collecting betting money from the punters were also indulged in collecting betting money from the punters within the premises of the Bangalore Turf Club and the said accused persons were unauthorizedly carrying on the business of betting within the premises of the Bangalore Turf Club, which was being supported by the staff of the Bangalore Turf Club. On receipt of such an information, the first informant along with the staff had visited the Bangalore Turf Club and after a preliminary verification, being satisfied that the information received by him was true, had approached the High Grounds Police Station, Bengaluru and had lodged the first information, based on which, FIR in Crime No.9/2024 was registered by High Grounds Police Station for the aforesaid offences against the petitioners herein.

Thereafter, the High Grounds Police along with CCB Police had conducted a raid on the premises of the Bangalore Turf Club where the bookies had installed their stalls and were indulged in collecting the betting amount from the punters illegally without maintaining proper registers and documents and had seized the amount of Rs.3,45,74,040/-.

4. During verification, the accused failed to produce the tax invoices, receipts, documents etc., to substantiate the amount seized and it was found that they were using yellow betting cards which was not issued by the Turf Club. Investigation Officer thereafter subjected the seized articles to panchanama. The police arrested as many as 66 persons and it is stated that nine persons were absconding. Subsequently, on 13.01.2024, the case was transferred to the CCB Unit for the purpose of further investigation as per the orders of the Commissioner of Police, Bengaluru. It is at this stage, petitioners have approached this Court with a prayer to quash the FIR registered against them in Crime No.9/2024.

5. Learned Senior counsel for the petitioners submits that petitioners herein are Licensed Bookies and they are licensed to collect the betting amount from punters. He submits that horse racing is kept out of the definition of the word 'Gaming' under the Act. The allegations against the accused is that they have been operating as bookies unauthorizedly. He has referred to the license copy of each of the petitioners and submits that the petitioners have valid license issued by the competent authority. He submits that Section 420 of IPC is not applicable and the same does not get attracted considering the allegations found in the first information. The other offences are non-cognizable in nature and therefore, to avoid compliance of Section 155(2) of Cr.P.C., the police have wrongly invoked Section 420 of IPC. He submits that even if the allegations made are presumed to true, it is only