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2021 Supreme(Online)(KER) 27698
HIGH COURT OF KERALA
V. G. Arun, J
N. JAYAMURUGAN – Appellant
Versus
THE DEPUTY SUPERINTENDENT OF POLICE – Respondent
Crl.MC/5809/2020
SRI.VINUCHAND, SRI.C.R.VINOD KUMAR, SHRI.GEEVARGHESE MATHEW
A partner in a lottery distribution scheme can be charged for violating both statutory provisions of the Lotteries Act and its associated Rules, independent of a direct complaint from the government.
Headnote:
Lottery - Criminal Conspiracy - Lotteries (Regulation) Act, 1998 - Sections 4(d), 4(f), 7(3), 9 - Summary: The court addressed violations relating to lottery ticket sales and distribution, specifically regarding authenticity, remittance of proceeds, and printing protocols, establishing liability under sections of the Act and Code.
Fact of the Case:
The petitioner, a partner in a lottery distribution firm, was charged with various violations of the Lotteries (Regulation) Act and Code related to the selling of Sikkim lottery tickets, including failing to ensure ticket authenticity and not remitting proceeds.
Finding of the Court:
The court upheld the decision of the lower courts that sufficient evidence existed to proceed with charges against the petitioner under applicable provisions of the Act, ruling that penal provisions encompassed both Act and Rules violations.
Issues: Whether the petitioner could be charged for violations of the Rules and if a lack of complaint from the Government of Sikkim negated the charges of cheating under the IPC.
Ratio Decidendi: Violations of the Lottery Act and its Rules established a framework for penalizing the petitioner, substantiating charges related to criminal conspiracy and cheating, despite the Government of Sikkim's lack of complaint.
Final Decision: The court dismissed the Criminal Miscellaneous Petition challenging the charges.
ORDER
Petitioner is the 5th accused in C.C.No.218 of 2015 pending before the Chief Judicial Magistrate, Ernakulam. The following is a brief narration of the essential facts;
The Government of Sikkim appointed M/s.Martin Lottery Agencies Ltd.( 'MLAL' for short ) as its sole distributor for Kerala, to market and sell lottery tickets organised and conducted by the Government of Sikkim. For this purpose, agreements were entered into between MLAL represented by its Director, Santiago Martin and the Government of Sikkim. The conduct and sale of lotteries ought to have been in accordance with the Lotteries (Regulation) Act , 1998 ('the Act' for short), and after its introduction on 1.4.2010, the Lotteries (Regulation) Rules, 2010 ('the Rules' for short). On 9.11.2010, Crime No.754 of 2010 was registered at the Museum Police Station, Thiruvananthapuram against Sri.Santiago Martin, Managing Director of MLAL and Sri.John Kennedy, Proprietor, Megha Distributors, Palakkad for the offences under Section 420 read with 34 of IPC, Sections 4 (d) and 4(f) read with 7(3) of the Act and Rules 3(5) and 3(17) of the Rules. The crime was registered based on a written complaint received from the Head of the Lottery Monitoring Cell, Kerala State, alleging that the accused, who were the promoters of Sikkim and Bhutan Lotteries, had violated various provisions of the Act and Rules, such as;
1.Not ensuring the authenticity and credibility of the tickets.
2.Not remitting the unclaimed prize money to the Government of Sikkim within the prescribed time.
3.Not printing the lottery tickets in Government Press or High Security Press.
and
4.Not remitting the money received by the sale of lottery tickets to the State Public Ledger Account or to the consolidated fund etc.
2. The complaint resulted in 32 crimes being registered at different police stations in the State. Later, considering the interstate ramifications and the amount of money involved, the investigation was handed over to the Central Bureau of Investigation. Of the 32 cases, the CBI filed closure reports in 23 cases and filed a consolidated final report/charge sheet in 7 cases. The allegation regarding non-ensuring of the authenticity and credibility of the tickets, by printing the seal and logo of the State on the lottery tickets, was found to be wrong and the final report was filed with the following allegations;
After being selected as the sole distributor for Sikkim Lotteries, a criminal conspiracy was hatched among Sri.Santiago Martin (A1), MLAL and unknown officials of Sikkim Government, for obtaining unlawful gain to Santiago Martin and MLAL, by cheating the Government of Sikkim, by violating various provisions of the Act. With this objective, an agreement was entered into between Santiago Martin, MLAL and the Government of Sikkim to entrust Sikkim Lottery Tickets to MLAL as the sole distributor for various states, including Kerala, for a period of three years from 6.8.1999 to 5.8.2002. Many of the clauses in the agreement were worded with intent to provide unlawful gain to MLAL and consequent loss to the Government of Sikkim. A second agreement, for a period of five years from 9.4.2001 to 8.4.2006, was entered into on 17.2.2001 and a third agreement for five years, on 6.10.2004, which was extended by another five years. An amendment agreement was executed on 8.4.2008 incorporating more clauses favouring the distributor. In the meanwhile, in December, 2007, the petitioner joined the conspiracy, in furtherance of which Sri.Santiago Martin constituted a partnership firm named ‘M/s.M.J.Associates’ with effect from 31.1.2007, for the sale of Sikkim and Bhutan lottery tickets in the State of Kerala. Sri.Santiago Martin held 51% shares in the partnership and the petitioner, 49%. The partnership continued till 13.6.2010. In the meanwhile, MLAL had changed its name to M/s.Future Gaming Solutions India Private Limited. By yet another agreement executed on 10.8.2009, the Government of Sikkim appointed M/s.Fu
