Biggest poll bond buyer changed govt's plan?

Biggest poll bond buyer changed govt’s plan?

Following reports of irregularities flagged by Comptroller and Audit General (CAG), Union home ministry had proposed to amend the Lotteries Regulation Act, 1998, seven years ago and revise the Lotteries Regulation Rules, 2010, but held back after several petitions by big market players including lottery king Santiago Martin’s Future Gaming and Hotel Services.

Future Gaming and Hotel Services is one of the biggest buyers of electoral bonds worth ₹1,368 crore as revealed in the recently released data by the Election Commission.

In its various audits in Sikkim, Mizoram and Nagaland, CAG had found grave violations that favoured marketing agents such as Future Gaming. In its 2017 report, the CAG noted, “The Ministry of Home Affairs, GoI, is reviewing the situation and is likely to notify new regulations whereby revenue receivables are expected to be linked to sales turnover.”

When contacted, a spokesperson at the home ministry did not comment.

As per the Lotteries (Regulation) Act, 1998, proceeds of sale of lottery tickets shall be credited into the public account of the state. Similarly, the Lottery (Regulation) Rules notified in April 2010 require that the organising state shall ensure that proceeds of the sale of lottery tickets as received from distributors or selling agents or any other source are deposited in the public ledger account or in the consolidated fund of the organising state.

The 2010 rules further note that it is the responsibility of the organising state to ensure that the income tax on prizes, wherever applicable, is deducted at source and that the prize money is credited to the bank account(s) of the prize winner(s). However, the CAG in its audit noted, “State had not worked out any mechanism for determining optimum share of its revenue resulting from lotteries. The state accepted the fixed minimum guarantee revenue offered by the marketing agents (such as Martin) without any analysis and irrespective of the volume of sales.”

The revised rules were to bring tighter norms for marketing agents such as Martin, said an official who was part of the deliberations.

Under the present rules, the state is required to specify qualifications, experience and other terms and conditions for the appointment of distributors or selling agents. They shall furnish a security deposit or a bank guarantee, specified by the state. The ban on Martin’s Future Gaming and Hotel Services has been upheld on several occasions by the home ministry in the past.

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