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An Act to regulate the Lotteries and to
provide for matters connected therewith and incidental
thereto.
Be it enacted by Parliament in the
Forty-ninth year of the Republic of India as follows:-
1. (1) This Act may be called the
Lotteries(regulation) Act, 1998.
(2) It extends to the whole of
India.
(3) It shall be deemed to have
come into force on the 2nd Day of
October,1997.
1.
In this Act, unless there
is anything repugnant in the subject or
context- Definitions.
1.
“bumper draw of lottery”
means a special draw of lottery conducted on or during
any festival or other special occasion wherein the prize
money offered is greater than the prize money offered in
the case of other ordinary draw of lotteries;
2.
“lottery’ means a scheme,
in whatever from and by whatever name called, for
distribution of prizes by lot or chance to those persons
participating in the chances of a prize by purchasing
tickets;
3.
“prescribed” means
prescribed by rules made under this Act.
2.
Save as otherwise provided
in section 4, no state government
shall organize, conduct or
promote any lottery.
3.
A State Government may
organize, conduct or promote a lottery, subject to the
following conditions, namely:-
1.
prizes shall not be offered
on any pre- announced number or on the basis of a single
digit;
2.
the State government shall
print the lottery tickets bearing the imprint and logo
of the State in such manner that the authenticity of the
lottery ticker is ensured;
3.
the State government shall
sell the tickets either itself or through distributors
or selling agents;
4.
the proceeds of the sale of
lottery tickets shall be credited into the public
account if the State;
5.
the State government itself
shall conduct the draws of all the lotteries;
6.
the prize money unclaimed
within such time as may be prescribed by the State
government or mot otherwise distributed, shall become
the property of that Government;
7.
the place of draw shall be
located within the State concerned;
8.
no lottery shall have more
than one draw in a week;
9.
the draws of all kinds of
lotteries shall be conducted between such period of the
day as may prescribed by the Stat Government;
10.
the number of bumper draw
of a lottery shall not be more than six in a calendar
year;
11.
such other conditions as
may be prescribed by the Central Government.
4.
State Government may,
within the State, prohibit the sale of tickets of a
lottery organized, conducted or promoted
by every other State.
5.
The Central Government may,
by order published in the Official Gazette, prohibit a
lottery organized, conducted or
promoted in contravention of the provisions of section4 or where
tickets of such lottery are sold in contravention of
the provision of section5.
6.
(1)Where a lottery is
organized, conducted or promoted after the date on which
this Act receives the assent of the President, in
contravention of the provisions of this Act, by any
department of the State government, the Head of the
Department shall be punishable with rigorous
imprisonment for a term which may extend to two years or
with fine or with both;Provided that nothing contained
in this section shall render such Head of the Department
liable to any punishment if he proves that the
contravention was committed without his knowledge or
that he exercised all due diligence to prevent the
commission of such contravention.
a. Notwithstanding
anything contained in sub-section(1), where a
contravention under this Act has been committed by a
Department of Government and it is proved that the
contravention has been committed with the consent or
connivance of, or is attributable to any neglect on the
part of, any officer, other than the Head of the
Department, such officer shall also be deemed to be
guilty of that contravention and shall be liable to be
proceeded against and punished accordingly.
b. If
any person acts as an agent or promoter or trader in any
lottery organized, conducted or promoted in
contravention of the provisions of this Act or sells,
distributes or purchase the tickets of such lottery, he
shall be punishable with rigorous imprisonment for a
term which may extend to two years or with fine or with
both.
7.
The offence under this Act
shall be cognizable and non-bailable.
9. (1) Where an offence under
this Act has been committed by a company, every person
who at the time the offence was committed was incharge
of, and was responsible to, the company for the conduct
of the business of the company, as well as the company
,shall be deemed to be guilty of the offence and shall
liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section
shall render any such person liable to any punishment if
he proves that the offence was committed without his
knowledge or that he had exercised all due diligence to
prevent the commission of such offence.
(2)
Notwithstanding anything
contained in sub-section(1), where an offence under this
Act has been committed by a company and it is proved
that the offence has been committed with the consent or
connivance of, or is attributable to, any neglect on the
part of, any director, manager, secretary or other
officer of the company, such director, manager,
secretary or other officer shall also be deemed to be
guilty of the offence and shall be liable to be
proceeded against and punished accordingly.
Explanation.-
For the purpose of this section-
(a)
“Company” means any body
corporate and includes a firm or other association of
individuals; and
(b)
“director”, in relation to
a firm, means a partner in the firm.
10. The Central Government may give
directions to the State Government as to carrying into
execution in the State of any of the provisions of this
Act or of any rule or order made thereunder.
11. (1) The Central Government may, by
notification in the Official Gazette, make rules to
carry out the provisions of this
Act.
(2) Every rule made by the Central
Government shall be laid, as soon as may be after it is
made, before each House of Parliament, while it is in
session, for a total period of thirty days which may be
comprised in one session or in two or more successive
sessions, and if, before the expiry of the session
immediately following the session or the successive
sessions aforesaid, both Houses agree in making any
modification in the rule, or both Houses agree that the
rule should not be made, the rule shall thereafter have
effect only in such modified from or be of no effect, as
the case may be; so, however, that any such modification
or annulment shall be without prejudice to the validity
of anything previously done under that rule.
12. (1) The State government may, by
notification in the Official Gazette, make rules to
carry out the provisions of this Act.
(2) In particular, and without prejudice
to the generality of the foregoing power, such rules may
provide for all or any of the following matters,
namely:-
(a) time to be fixed for
claiming prize money under clause (f) of section4;
(b) period to be fixed for
draws of all lotteries under clause(i) of section 4; and
(c) any other matter which is
required to be, or may be prescribed.
(3) Every rule made by the Stat
Government under this section shall be laid, as soon as
may be after it is made, before each House of the State
Legislature where it consists of two Houses, or where
such Legislature consists of one House, before that
House.
FINANCE DEPARTMENT
(Directorate of State Lotteries)
NOTIFICATION
Shimla-9, the 28th February,
2004
No. fin(LTR) A(1)-10/2001-
In exercise of the powers conferred under section 5 of
the Lotteries(Regulation) Act,1998 (Central Act No. 17
of 1998), the Government of Himachal Pradesh is pleased
to prohibit the sale of tickets of all types or
lotteries organized, conducted or promoted by all State
Governments and Union Territories including the State of
Himachal Pradesh within the territory of Himachal
Pradesh.
Any individual, company, agent or his
representative or any other person acting in violation
of this notification, shall be liable to be punished
under section 7, 8 and 9 of the Act
ibid.
By order
Sd/-
Principal Secretary.
No. Fin(TR)B(15)-3/95-II
Government of Himachal Pradesh
“Finance Department”
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