C.P. Sen, J.

1. This is a Public Interest Litigation regarding what is termed as Churhat Lottery Scandal. The Petitioner is seeking cancellation of the licence which was granted under M. P. Lottery (Niyantran Tatha Kar) Adhiniyam, 1973, (hereinafter referred to as Lottery Act) for holding the lottery, submission of accounts of the different draws of the lottery and the prizes distributed, quashing the order of the Collector condoning holding of lotteries beyond the licence period, quashing the order of the State Government granting exemption from payment of tax, for prosecution of the Society for committing various illegalities and irregularities in conducting the lottery against the provisions of the Lottery Act and M. P. Lottery (Niyantran Tatha Kar) Niyam, 1974, (hereinafter referred to as Lottery Rules) and the licence conditions, enquiry by an independent agency into the affairs of the Society and taking action against the Collector for granting licence without enquiry and without seeking full compliance of the provisions.

2. The Petitioner Shri Kailash Joshi is a leader of the Opposition in M. P. Vidhan Sabha. He has been Ex-President of the State Bhartiya Janta Party and was also Chief Minister of the State for sometime. Respondent No. 3 Shri Arjun Singh was elected as the Chief Minister of the State in June 1980, having been elected from Churhat Constituency in the Vidhan Sabha in the general elections and he continued his full term and thereafter he was again elected Chief Minister and in that capacity he continued up to 12-3-1985 when he was appointed as Governor of Punjab. He resigned from Vidhan Sabha seat. In his place, his son Shri Ajay Singh, Respondent No. 7, has been elected in the Vidhan Sabha from this constituency. The Respondent No. 3 then joined the Central Cabinet and thereafter became the Vice-President of the All India Congress Party. After sometime, he again became Cabinet Minister in the Ministry of Communication and returned to the State as Chief Minister on 14-2-1988. Shri Motilal Vora, the present Central Cabinet Minister for Health was the Chief Minister of the State between 13-8-1985 to 13-2-1988. It is not disputed that on the inspiration of the Respondent No. 3, Churhat Children Welfare Society (for brevity hereinafter referred to as Churhat Society) was registered under M. P. Registrikaran Adhiniyam, 1973, with the object of promoting education, rehabilitation and health to children, implementation and publicity of family welfare programmes and running of schools, libraries, training centres, welfare centres etc. with Shri Martand Singh ex-ruler of Rewa State and ruling party Member of Parliament as the Chairman, Dr. Sajjan Singh, brother of Respondent No. 3, as Vice Chairman, Shri Ajay Singh son of Respondent No. 3 as Secretary, Shri B.P. Singh, son-in-law of the Respondent No. 3, as Treasurer and Shri S. P. Singh, another relation of the Respondent No. 3 as member of the governing body.

3. Sometime in November 1983, the Churhat Society applied to the State Government for permission to run lottery for helping handicapped and destitute children of the area which was received by the State Government on 30-1 1-1983. The Finance Secretary wrote to the Churhat Society on 16-12-1983 that the Government has agreed to permit the Churhat Society to hold the lottery for the avowed purpose of the Society and since the Collector was the authority to grant licence, Churhat Society was advised to apply to the Collector for licence. The Collector was also advised by the Finance Secretary, on the same date, that on an application being made, the licence may be issued under Section 7 of the Lottery Act, subject to such terms and conditions as may be prescribed. Thereafter, Churhat Society applied to the Collector in Form-B prescribed under Section 6 of the Lottery Act for grant of licence to organise private lottery for raising funds for humaniterian purposes. On a regular basis, a licence was granted by t