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Synopsis

The Supreme Court has agreed to hear a petition challenging the order banning Meghalaya and Sikkim State-run lotteries in other states.

A bench of the Chief Justice of India NV Ramana, Justice JK Maheshwari, and Justice Hima Kohli has agreed to hear the matter next week.

Senior Advocate Abhishek Manu Singhvi appearing for the Sikkim government argued, "How can one state ban lotteries in another state in a federal structure?"

Senior Advocate Mukul Rohatgi appearing for the state of Meghalaya submitted that the state is crying for revenue, it is an urgent matter.

The plea has challenged court’s earlier decision and the validity of Section 5 of the Lotteries (Regulation) Act, 1998. It has been argued that the small, hilly northeastern states rely heavily on organizing lotteries to bring in money and the condition of these states has suffered a lot during the pandemic.

The Court had earlier asked the Additional Solicitor General Sanjay Jain to clarify the stand of the Central Government over the issue. 

The Court had also opined that restrictions on privately operated lotteries are understandable since there may be concerns about the transparency of draws, but state-run lotteries may not be subject to the same restrictions because of the legitimacy that comes with being controlled by the government.

CJI Ramana had said, "Can a state in a federal system forbid the trading of goods, in this case, lottery tickets, from another state within its borders? Let the Centre be clear about its position".

Case Title: The State of Meghalaya Vs. Union of India & Ors.