Prasanta Kumar Saikia, J.

1. Heard Mr. Biswajit Talukdar, learned counsel assisted by Mr. Akum Jamir, learned counsel for the petitioner. Also heard Mr. R.M Deka, learned counsel for respondent No. 1 to 4 as well as Mr. K.N. Choudhury, learned counsel for the respondent No. 5 and Mr. Indra Neel Choudhury assisted by Mr. Keviphotsu Angami, learned Government Advocate appearing for the State. This PIL has been initiated for the following prayer:-

In the premises aforesaid, it is, therefore, respectfully prayed that your honour would graciously be pleased to admit this petition, call for the relevant records of the case, issue of Rule calling upon the respondents to show cause as to why:

(a) An appropriate direction shall not be made or issued to restrain/cancel the illegal extension of Distributorship in favour of M/s. Future Gaming Solutions Private Limited.

(b) An appropriate directions shall not be issued to the State Government for an enforcement of the various Lotteries Laws applicable to Nagaland strictly in consonance with Nagaland State Lotteries 2007.

(c) Mandumus should not be issued directing the respondents authorities to recall rescind and otherwise, forebear from further continuation of extension of distributionship to M/s. Future Gaming Solutions Private Limited, and all other process/proceedings arising out of the said action.

(d) Call for the relevant records of the Department of State Lotteries and upon cause or causes that may be shown and after hearing the parties as well as on perusal of records be pleased to make the Rule absolute and/or pass such other further order/orders as your lordships may deem fit and proper in the interest of justice.

2. The facts, as stated in the petition under Article 226 of the Constitution of India and which are necessary for disposal of the present proceeding, in brief, are that the Director of Nagaland State Lotteries (in short, the DNSL) was established in 1972 with the object of generating revenue for the State of Nagaland by means of organizing and conducting State Lotteries and for conducting such Lotteries smoothly, efficiently and in a transparent manner, the Nagaland State Lotteries (Regulation) Rules were framed which was amended from time to time in accordance with the provisions of law, laid down by Government of India under the Lotteries (Regulation) Act, 1998 and Lotteries (Regulation) Rules, 2010.

3. The Nagaland State Lotteries have been organizing, conducting and promoting State Lotteries both paper and on-line, as stated above, with the primary object of generating fund necessary for undertaking various welfare measures, such as, health, education, infrastructure development and anti-poverty measures etc.

4. In that connection, it has been stated that in terms of Entry 40 in List 1 of the Seventh Schedule of the Constitution of India, the Parliament of India enacted the Lotteries Regulation Act, 1998 in order to regulate the Lotteries and to provide necessary guidelines over the matter connected therewith and incidental thereto. All those rules were put in place over the years in order to ensure that Lottery business is conducted in an absolutely free, fair and transparent manner so that Lottery business, conducted by State, infuses confidence to the participants and all the persons and institutions connected therewith.

5. Since the inception the Lottery business in the State of Nagaland, same has never been conducted in the excepted way. Rather, the authority concerned, conducted the business in an arbitrary and discriminatory way favoring only some blue eyed boys which ultimately caused the State exchequer to sustain enormous loss, not only in terms of money but in the term of goodwill from the people as well. Such State of affairs had dragged the Directorate of Nagaland State Lottery Department, the apex body to deal with Lotteries business in the State of Nagaland, to the Court again and again.

6. It has also been stated that there was huge illegal nexus betw