Acts/Rules

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THE LOTTERIES (REGULATION) ACT, 1998

(Act. 17 of 1998)

[7th July, 1998]

An Act to regulate the lotteries and to provide for matters connected there with and incidental thereto.

Be it enacted by Parliament in the Forty-ninth Year of the Republic of India as follows:
1. SHORT TITLE, EXTENT AND COMMENCEMENT -
(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.
2. DEFINITIONS - In this Act, unless there is anything repugnant in the subject or context:-
(a) "bumper draw of a 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;
(b) "lottery" mans a scheme, in whatever form 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;
(c) "prescribed" means prescribed by rules made under this Act.
3. PROHIBITION OF LOTTERIES - Save as otherwise provided in Sec. 4, no State Government shall organize, conduct or promote any lottery.
4. CONDITIONS SUBJECT TO WHICH LOTTERIES MAY BE ORGANISED, ETC. - A State Government may organize, conduct or promote a lottery, subject to the following conditions, namely:-
(a) Prizes shall not be offered on any pre-announced number or on the basis of a single digit;
(b) 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 ticket is ensured;
(c) The State Government shall sell the tickets either itself or through distributors or selling agents;
(d) The proceeds of the sale of lottery tickets shall be credited into the public account of the State.
(e) The State Government itself shall conduct the draws of all the lotteries;
(f) The prize money unclaimed within such time as may be prescribed by the State Government or not otherwise distributed shall become the property of that Government;
(g) The place of draw shall be located within the State concerned;
(h) No lottery shall have more than one draw in a week;
(i) The draws of all kinds of lotteries shall be conducted between such period of the day as may be prescribed by the State Government.
(j) The number of bumper draws of a lottery shall not be more than six in a calendar year;
(k) Such other conditions as may be prescribed by the Central Government.
5. PROHIBITION OF SALE OF TICKETS IN A STATE: -A State Government may, within the State, prohibit the sale of tickets of a lottery organized, conducted or promoted by every other State.
6. PROHIBITION OF ORGANISATION, ETC. OF LOTTERY -The Central Government may, by order published in the Official Gazette, prohibit a lottery organized, conducted or promoted in contravention of the provisions of Sec. 4 or where tickets of such lottery are sold in contravention of the provisions of Sec.5.
7. PENALTY -
(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.
(2) 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.
(3) 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 purchases the ticket 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.
8. OFFENCES TO BE COGNIZABLE AND NON-BAILABLE -The offence under this Act shall be cognizable and non-bail able.
9. OFFENCES BY COMPANIES -
(1) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed was in charge 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 be 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 purposes of this section, -
(a)    "company" means anybody 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. POWER TO GIVE DIRECTIONS - 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 there under.
11. POWER OF CENTRAL GOVERNMENT TO MAKE RULES - 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 there under.
(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 made, the rule shall thereafter have effect only in such modified form 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. POWER OF STATE GOVERNMENT TO MAKE RULES - 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 there under.
(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 Cl.(f) of Sec. 4;
(b)    period to be fixed for draws of all lotteries under Cl.(i) of Sec.4; and
(b)    any other matter which is required to be, or may be, prescribed.
(3) Every rule made by the State 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.
13. REPEAL AND SAVING -
(1) The Lotteries (Regulation) Ordinance, 1998 (Ord. 6 of 1998), is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act.

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[TO BE PUBLISHED IN THE GAZETTE OF INDIA, PART-II, SECTION 3, SUBSECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF HOME AFFAIRS

New Delhi, the 1st April, 2010

Notification

G.S.R. -- In exercise of the powers conferred by sub-section (1) of section 11 of the Lotteries (Regulation) Act, 1998 (Act 17 of 1998), the Central Government hereby makes the following rules, namely:-

1. Short title and commencement. - (1) These rules may be called the Lotteries (Regulation) Rules, 2010.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. Definitions. -(1) In the rules, unless the context otherwise requires,-
(a) "Act" means the Lotteries (Regulation) Act, 1998 (17 of 1998);
(b) "central computer server" means a system of multiple computers at a central location under the direct control of the Organising State that accepts, processes, stores and validates the online lottery transactions or otherwise manages, monitors and controls the entire system of online lottery;
(c) "distributor or selling agent" means an individual or a firm or a body corporate or other legal entity under law so appointed by the Organising State through an agreement to market and sell lotteries on behalf of the Organising State;
(d) "draw" means a method by which the prize winning numbers are drawn for each lottery or lottery scheme by operating the draw machine or any other mechanical method based on random technology, which is also visibly transparent to the viewers;
(e) "online lottery"" means a system created to permit players to purchase lottery tickets generated by the computer or online machine at the lottery terminals where the information about the sale of a ticket and the player's choice of any particular number or combination of numbers is simultaneously registered with the central computer server;
(f) "Organising State" means the State Government which conducts the lottery either in its own territory or sells its tickets in the territory of any other State;
(g) "prize" means the amount payable against a winning number ticket;
(h) "sale proceeds" means the amount payable by the distributor to the Organising State in respect of sale of tickets calculated at the face value printed on each ticket in respect of lotteries of a particular draw or scheme or both;
(i) "security deposit" means a deposit or amount or bank guarantee paid to the Organising State by the distributor or selling agent in any form for due fulfilment of the contract.
(2) Words and expressions used but not defined herein but defined in the Act shall have the meanings respectively assigned to them in the Act.
3. Organisation of Lottery. - (1) A State Government may organise a paper lottery or online lottery or both subject to the conditions specified in the Act and these rules.
(2) The State Government may organise a lottery or lotteries, if it so decides, by issuing a notification in its Official Gazette, outlining the purpose, scope, limitation and methods thereof.
(3) The Organising State shall announce in advance, by way of a notification in the Official Gazette, the following information about every lottery, namely:-
(a)     the name of the lottery or lottery scheme;
(b)     prices of the lottery ticket;
(c)     total number of tickets printed in case of paper lottery;
(d)     gross value of the tickets printed;
(e)     name or names of the distributors or selling agents with their addresses and contact information;
(f)     prize structure;
(g)     the amount offered as prize money;
(h)     periodicity of the draw;
(i)     the place where the draw shall be conducted; and
(j)     the procedure for drawing the prize winning tickets or prize-winners.
(4) In case an Organising State decides to organise more than one lottery, the procedure as provided in sub-rule(3) shall be followed for each lottery.
(5) The paper lottery tickets and the stationery on which the online lottery tickets are issued shall be printed by the Organising State at a Government Press or any other high security press included in the panel of the Reserve Bank of India or the Indian Banks' Association, Mumbai.
(6) The number of lottery draws except bumper draw by an Organising State, from all the lottery schemes put together, shall not be more than twenty four per day.
(7) No draws of a lottery shall be conducted on any National Holiday.
(8) The minimum sale price of a ticket shall not be less than two rupees.
(9) The first prize in any lottery scheme shall not be less than ten thousand rupees.
(10) The Organising State shall charge a minimum amount of five lakh rupees per draw for bumper draw of lottery and, for all other forms of lottery, a minimum amount of ten thousand rupees per draw.
(11) The State Government under whose jurisdiction the lottery tickets are being sold shall be entitled to charge a minimum amount of two thousand rupees per draw from the Organising State but the maximum amount chargeable shall not be more than what is being charged by the State Government from its own lotteries.
(12) The Organising State shall publish the result of the draws in at least one national and two state level newspapers out of which one shall be in English as well as in its Official Gazette.
(13) The Organising State shall designate an officer, not below the rank of Secretary to the Government of the State, as the designated authority, who shall be responsible for organising the lottery in the State.
(14) An Organising State shall not offer a prize on a lottery ticket or in an online lottery on the basis of single, double or triple digit in any form or combination.
(15) In cases where an Organising State appoints or authorizes distributors or selling agents, it shall be the responsibility of the Organising State to ensure that the said distributors or selling agents act in conformity with the provisions of the Act and these rules.
(16) The Organising State shall keep records of the tickets printed, tickets issued for sale, tickets sold, tickets which remain unsold at the time of the draw, and the prize winning tickets along with the amount of prize or prizes in respect of each draw, in the manner prescribed by the Organising State.
(17) The Organising State shall ensure that proceeds of the sale of lottery tickets, as received from the distributors or selling agents or any other source, are deposited in the Public Ledger Account or in the Consolidated Fund of the Organising State.
(18) It shall be the responsibility of the Organising State to ensure that 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).
(19) Every Organising State shall conduct an annual financial and systems audit of the various lottery schemes organised by it including online lottery.
(20) The Central Government may also conduct a special audit of any lottery or lottery scheme organised by any Organising State through the Comptroller and Auditor General of India or any other agency appointed by the Central Government for the purpose and take suitable action thereon.
(21) The Organising State shall devise suitable means and procedures to effectively supervise the conduct of the lottery including the process of draws and all steps till publication of results to avoid any malpractices.
(22) Every State Government shall ensure that no lottery, in any form, is organised by any authority other than the Organising State or its appointed distributors or selling agents within its jurisdiction.
4. Appointment of distributor or selling agent. -(1) The Organising State may specify qualifications, experience and other terms and conditions for the appointment of distributors or selling agents.
(2) The distributors or selling agents shall furnish a security deposit or a bank guarantee, as may be specified by the Organising State.
(3) The distributors or selling agents shall maintain a record of the tickets obtained from the Organising State, tickets sold and those which remain unsold up to the date and time of draw along with other details, as may be specified by the Organising State.
(4) The Organising State shall pay to the distributors or selling agents any commission due to them and the prize amounts disbursed by the distributors or selling agents to the winners, if any, out of the money so deposited in the Public Ledger Account or in the Consolidated Fund of the Organising State.
(5) The distributors or selling agents shall return the unsold tickets to the Organising State with full accounts along with the challans of the money deposited in the Public Ledger Account or in the Consolidated Fund of the Organising State through the sale of tickets.
(6) The unsold tickets and unused counterfoils of lottery tickets shall be disposed of in the manner specified by the Organising State from time to time.
5. Procedure to prohibit the sale of lottery tickets by the Central Government. -(1) The Organising State may specify qualifications, experience and other terms and conditions for the appointment of distributors or selling agents.
(1) If a State Government is of the opinion that the Organising State or their distributors or selling agents are organising lotteries in violation of the provisions of the Act and these rules, it shall immediately bring the violations to the notice of the Organising State concerned alongwith the details of such violations or irregularities noticed and the Central Government shall also be apprised of such violations or irregularities simultaneously.
(2) The Organising State shall send a suitable response on the issues raised by the State Government under sub-rule (1), within a period of thirty days of the receipt of such communication.
(3) In case where the State Government concerned is not satisfied with the response sent by the Organising State under sub-rule (2) or the Organising State does not respond or does not take action to discontinue the organization of the said lottery scheme, the State Government concerned, under whose jurisdiction the lottery tickets are being sold, may bring to the notice of the Central Government all relevant details of violations or irregularities and the communications made with the Organising State, along with its recommendations on the action to be taken including banning of such lottery scheme of the Organising State in the geographical limits of its State.
(4) The Central Government shall, after giving reasonable opportunity to the Organising State of being heard either in writing or in person, take the final decision whether action is required to be taken against the lottery scheme of the Organising State under section 6 of the Act.
(5) In case the Central Government decides to prohibit any such lottery scheme, it shall issue an order under section 6 of the Act prohibiting such lottery and direct the State Government concerned to give wide publicity through daily newspapers or electronic media or both about the decision of the Central Government.
F.No. V-17013/31/2004-CSR-I
(Dr. Nirmaljeet Singh Kalsi)
Joint Secretary to the Government of India

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PUNJAB GOVT. GAZ. (EXTRA), AUGUST 28, 2015

(BHDR 6, 1937 SAKA)

PART III

GOVERNMENT OF PUNJAB

DEPARTMENT OF FINANCE

(DIRECTORATE OF LOTTERIES)

NOTIFICATION

The 24th August, 2015

No. G.S.R.47/C.A.17/1998/S.12/2015.-In exercise of the powers conferred by section 12 of the Lotteries (Regulation) Act, 1998 (Central Act 17 of 1998), and all other powers enabling him in this behalf, the Governor of Punjab is pleased to make the following rules to regulate the State Lotteries run by the State Government, namely:-

RULES

1. Short title, commencement and application.- (1) These rules may be called the Punjab State Lotteries Rules, 2015.
(2) They shall come into force on and with effect from the date of their publication in the Official Gazette.
(3) They shall apply to all the lotteries, organized, conducted and run by the State Government.
2. DEFINITIONS.- In these rules, unless the context otherwise requires,-
(a) ‘Act’ means the Lotteries (Regulation) Act, 1998;
(b) 'advertising agency' means an agency engaged by the State Government for making the publicity of the State Lottery Schemes;
(c) “Agency license fee” means a fee payable by the project agent to the authority in consideration of rights granted to him for On-Line lottery. However, the quantum of fee shall be equivalent to the bid amount quoted on the basis of minimum guaranteed revenue or percentage (%) of net sales (i.e. gross sales minus price winning claims) as specified in the bid document, for a agency period as calculated on per annum basis, whichever is higher. The same shall be payable from the date of sale of the first ticket of the lottery on yearly basis and the same shall be payable in advance on priority basis for each week comprising seven days or any left over license number of days at the end of each such year on proportionate basis during the agency period or as decided from time to time by the Government ;
(d) “Agency period” means a period for which an agreement has to be executed between the project agent and the Director ;
(e) 'agent’ means a person appointed as such by the State Government, with whom an agreement for the sale of lottery tickets both paper lottery and On-Line lottery mode is executed and it includes sole selling agent, distributor or selling agent ;
(f) 'agreement’ means an agreement executed between the Director and the Agent or Printer or Advertising Agency or any other agency, as the case may be ;
(g) “Authority” means an Authority decided as such by the Government from time to time for carrying out the purposes of these rules;
(h) "Central Rules" means the Lotteries (Regulation) Rules ,2010;
(i) 'Director' means the Director of Punjab State Lotteries;
(j) “Minimum guaranteed revenue” means a minimum amount on which the project agent has to submit bid as per bidding document and has to quote a bid over and above the said amount. If the Agency Period is more than one year then Minimum Guaranteed Revenue for subsequent years would be as defined in the bid document ;
(k) 'Printer' means a person with whom an agreement has been executed for printing of lottery tickets and stationery items to be used for printing of online lottery tickets ;
(l) "Proceed remittable to bidder" means such percentage of proceeds (as defined in bid document) remittable by the Government to the bidder for such year where percentage of Net Sales as defined in Bid document (Gross Sale minus prize Winning Claims) is greater than minimum guaranteed revenue for that year ;
(m) 'purchase advance’ means an amount required to be paid in advance by an agent before lifting the tickets;
(n) 'State Government' means the Government of the State of Punjab in the Department of Finance;
(o) ‘State Lottery’ means the Punjab State Lottery organized,conducted or run by the State Government both paper lottery and On-Line Lottery which is envisaged to offer lottery games played through a network of terminals, with the terminals connected to a main datacentre at a Central Computer Server ;
(p) 'tender committee' means a Committee of Officers including its Chairman constituted by the Principal Secretary, Finance for considering and making recommendations with regard to the tenders invited for all kinds of matters related to the lottery organisation and incidental thereto or any such committee which is constituted by any authority higher in rank than Principal Secretary, Finance ; and
(q) ‘tickets' means the State Lottery tickets including both paper lottery and online lottery published and released by the Director for sale of a particular draw under any lottery including tickets released by different/authorized outlets with respect of On-Line Lottery ;
3. Headquarter of the office of the Director.- The Headquarter of office of the Director shall be at Chandigarh or at any other place as may be decided by the State Government .
4. Conducting of the State Lottery.- (1) The State Lottery shall be organized and conducted as per provisions of the Act by the State Government by opening sale depots for tickets or by sale of tickets through agent or by setting up a Central Information and Processing Centre which shall be connected on line to all outlets. However, the procedure for the selection of Agent, shall be decided by the Government from time to time under the terms and conditions regulated by the agreement executed with them.
(2) The State lottery shall be named as the Punjab State Lotteries. It may be sub-named as may be decided by the Director in consultation with the agents.
5. Printing of tickets .- (1) In case of On-Line Lottery, printing of tickets and stationery on which the lottery tickets are to be printed shall be arranged by the State Government through the Director. The expenditure on printing of tickets shall be got reimbursed from the Agents.
(2) The Director, shall arrange to deliver the tickets to the agents, at the place mutually agreed upon and through the authorized outlets with respect to the On-Line Lottery.
(3) The form, size and design of tickets shall be decided by the Director.
(4) The tickets printed for each draw shall bear Imprint and logo of the Government of the State of Punjab, ticket number, the date of draw and price of ticket. However, with respect of the On-Line Lottery, the numbers or any other form chosen as per the scheme by the purchaser shall be printed/allotted by the outlet holder by means of computer/any other approved device.
(5) On the back of the ticket, there shall be printed in English, prize pattern and such other essential details and conditions, which the Director may consider necessary for the information of the purchasers of tickets. In case of On-Line lottery the detail of the scheme can be obtained from terminal holder or the Director.
(6) In the case of paper lottery, the tickets and the stationery shall be printed and issued by the Director to the agents or to the officials of the Directorate of Lotteries and the cost shall be borne by the Government.
6. Prohibition of sale of tickets.-The tickets shall not be sold by the agent in a State or upon where the sale of the tickets is prohibited by law unless permission of the competent authority is obtained in this behalf by the Director.
7. Timings and place of draw.- (1) The draw shall be conducted by the State Government.
(2) The timings of draw for all types of lotteries shall be fixed by the Director between 6.00 A.M. to 9.00 P.M. in consultation with the Agents.
(3) The date and timing of draw shall not be altered ordinarily. However, under exceptional circumstances, depending upon the market conditions or for any other unforeseen circumstances, the Director, may alter date and timing of draw.
(4) The place of draw shall be within the State of Punjab which shall be fixed by the Director. However, the Director may change it if he considers necessary to do so.
8. Lifting of tickets by the agents.- (1) The first draw shall be held within period as specified in the terms and conditions of a particular lottery. In case the first draw is not held within the stipulated period due to any failure on the part of the agent, then his earnest money shall be forfeited:

          Provided that the Government may extend the period for holding first draw if it considers necessary to do so in public interest.

(2) The agent shall lift a specific number of tickets in case of paper lottery scheme by depositing the requisite advance as per approved rates or as being directed by the Director in this behalf or by depositing requisite Agency fee as per the provisions of the terms and conditions of the lottery scheme.

          In case of On-Line lottery, the requisite fixed agency fee as per approved rates shall be deposited strictly as per agency agreement.

(3) In case the agent does not lift the tickets already printed in full or in part, he shall have to pay the damages equal to the amount of the invoice value of the tickets.
(4) In case of tenders, the agent or printer shall have to furnish bank guarantee equal to the amount as decided by the Tender Committee or by the State Government as the case may be. However, in case of bumper draw of a lottery, the amount of bank guarantee or security shall be as provided in the particular bumper draw of lottery to be approved by the State Government.
(5) In case there is a loss of tickets in transit due to any valid reasons, the same shall be published by the Director in the local newspaper. However, in case the tickets are once handed over to the agent or to his duly authorized sub-agent and there is any loss of tickets due to any reasons, no compensation of any kind shall be allowed to the agent.
9. Withdrawal from sale marketing of tickets by the agent.- In case the agent wants to stop the sale of tickets at his own Will, he shall have to give a notice of such an advance period as agreed upon by him by way of agreement, otherwise he shall have to pay the penalty as per the said agreement.
10. Publication of results.- The result of the draw shall be published by the Director in various newspapers as well as the Punjab Government Gazette and would also be made available on the outlets. A certified copy of the result shall be supplied to the agents immediately after the draw and the sole responsibility shall be of the agent to make available the result of the draw to all the sellers of lottery tickets.
11. Payment of prizes.- (1) The payment of prizes below or equal to the value of 10,000/- rupees (ten thousand rupees) after deducting the applicable taxes as may be required under Taxation law, if any, to the prize winners on behalf of the State Government within a stipulated period as specified in the Schemes from time to time shall be made by the agent on behalf of the State and agent would seek reimbursement as per scheme.
(2) The payment of bigger prizes shall be made by the Director after deducting the Income Tax.
(3) The prizes, which are not claimed by the prize winners within a stipulated period as specified in the Scheme, shall stand forfeited to the State Government:

          Provided that the Director may after the expiry of the specified period in the Scheme, but not exceeding 'ninety days', disburse the prize amount to a prize winner on his application, for reasons, to be recorded in writing:

          Provided further that the State Government after the expiry of a period of ninety days, but not exceeding one hundred and eighty days, disburse the prize amount to a prize winner on his application, for reasons, to be recorded in writing.

(4) If any prize money remains unclaimed or is not disbursed within the aforesaid specified period, it shall become the property of the State Government. To determine the unclaimed or undistributed prize money, the agents shall submit the prize winning tickets to the Director within the period, determined by the tender committee.
(5) For the purpose of transactional accounting in case of online lottery, the agents shall ensure the genuineness before disbursing all the prizes below and equal to Rs. 10,000/- (ten thousand rupees) to the winners on the day of the draw or as specified in the Scheme.
12. Appointment of Consultants.- The Director may appoint any consultant or any other person having requisite qualifications to be prescribed by the Director for checking and counting of tickets and prize winning tickets or to carry out a due diligence, if need be, on the selected bidder.
13. Payment to minors.- In the event of a minor becoming a prize winner, the prize money shall be given to his natural guardian on production of proof to the satisfaction of the Director regarding the genuineness of guardianship, failing which the amount shall be paid to the minor prize winner, on attaining the age of maturity.
14. Deduction of Income Tax.- Income Tax on prizes wherever applicable, shall be deducted at source.
15. Forged or torn out tickets.- (1) A ticket which is forged, torn out, mutilated or tampered with, shall not be entertained.
(2) In case of any doubt, the Director may get the tickets verified from the printing press or by a forensic science laboratory or any other authority as he deems fit.
16. Mode of disbursement of payments.- (1) All the prize winning ticket holders shall be paid in Indian currency.
(2) One ticket shall enable the holder thereof to claim one prize only, whichever is higher.
17. Depositing of sale proceeds of tickets.- In case of paper lottery, the agent shall lift a specific number of tickets as per lottery scheme by depositing the requisite purchase advance as per approved rates , one or two or three weeks in advance, as may be directed by the Director in this behalf or by depositing requisite agent fee as per the provisions of the terms and conditions of the lottery Scheme.

          In case of On-Line Lottery, the deposit of sale proceeds, reimbursement/ adjustment of prize money and revenue share of the agent shall be as per the Agency Agreement. A committee consisting of at least three officers /officials with Deputy Director of lotteries as in - charge shall ensure the reimbursement/ adjustment of prize winning amount and revenue share to the agent from the receipt of sale proceeds.

18. Framing of lottery scheme.- (1) The State Government may frame different lottery schemes from time to time.
(2) The State Government may specify qualifications, experience and lay down other terms and conditions keeping in view the prevailing market conditions to become eligible to be an agent or printer.
(3) The lottery scheme can be changed or modified by the State Government in consultation with the agents keeping in view the market conditions
(4) For the smooth running of the lottery schemes and to check the illegal menace of Satta/Matka under the garb of legal lotteries, a raiding team headed by an official of the Directorate of Lotteries and supported by police force to be headed by an officer not below the rank of Non Gazetted Officer, shall be constituted with the approval of the State Government. The salary of the said police personnel shall be borne by the Directorate of Lotteries. The entire raid team shall work under the overall directions and control of Director and instructions related to any issue concerning the Police Officials on Deputation with Directorate of Lotteries shall be issued by State Government from time to time.
19. Making good of loss.- In the event of any loss or damage caused to the State Government due to the omission or negligence of the agent or his duly authorized outlet holder, printer, advertising agency or any other quarter, as the case may be, the same shall be made good by the said agent, printer or advertising agency or any other quarter, as the case may be.
20. Weeding out of Old Record.- After the draw is over, the record which is no longer required, shall be kept in the custody of the office of the Director for a maximum period of one year, after which it shall be destroyed by communicating the decision in this regard to the office of the Accountant General, Punjab at least one month before the date of such destruction.
21. Arbitrator.- In case of any dispute having arisen and any action or decision taken thereof shall be referred to the Secretary to the State Government in the Department of Finance, as a Sole Arbitrator and his decision thereon shall be final and binding.
22. Remission.- In case of natural calamities or circumstances beyond the control of agent or printer, the State Governmnt may consider to allow such remission to the agent or printer, as the case may be, as it may deem appropriate.
23. Interpretation.- If any question arises for the interpretation of these rules, or any other matter concerning thereto, the same shall be referred to the State Government and its decision thereon shall be final.
24. Right to issue instructions.- The State Government shall have all rights to issue any instructions from time to time for the matters, which may not be specifically covered under these rules, for the smooth functioning of its lotteries including On-Line Lottery and all instructions so issued by the State Government shall be read in cohesion with rules, provisions of the Act, terms and conditions laid down in the Tender Document, Invitation of Bids for On-Line Lottery System and also with the, terms and conditions entered in the other tender notice agreements. All such instructions shall have the force of law and shall be binding on all concerned.
25. Repeal and saving.- The Punjab State Lotteries Rules, 1998 are hereby repealed.

          Notwithstanding such repeal, anything done or any action taken under the said rules of 1998, shall be deemed to have been done or taken under the corresponding provisions of these rules.

D P REDDY,
Principal Secretary to Government of Punjab,
Department of Finance.

PUNJAB GOVT. GAZ. (EXTRA), AUGUST 28, 2015

(BHDR 6, 1937 SAKA)

PART III

GOVERNMENT OF PUNJAB

DEPARTMENT OF HOME AFFAIRS AND JUSTICE

(HOME-VI BRANCH)

NOTIFICATION

The 26th August, 2015

No. S.O.35/C.A.2/1974/S.2/2015.-In partial modification of the Government of Punjab Department of Home affairs and Justice, Notification No. 11/4/98-1H6/1239, dated the 11th June, 2001 and in pursuance of the provisions of clause (s) of section 2 of the Code of Criminal Procedure, 1973 (Central Act No. 2 of 1974), and all other powers enabling him in this behalf, the Governor of Punjab is pleased to direct the transfer of the local areas consisting of the villages mentioned on Column 2 of the Schedule given below, from the local area of the Police Station mentioned in the Column 3, to the local area of the Police Station mentioned in Column 4 of the said Schedule on and with effect from the date of publication of this notification in the Official Gazette, namely:-

SCHEDULE

Serial No. Name of the Village and Hadbast Number Name of the Police Station in which hither-to-fore included Name of the Police Station to which transferred
1. Khatib -243 Police Station Qila Lal Singh Police Station Civil Lines Batala
2. Gokhuwal -242 Police Station Qila Lal Singh Police Station Civil Lines Batala
JAGPAL SINGH SANDHU
Additional Chief Secretary to Government of Punjab,
Department of Home Affairs and Justice.

EXTRAORDINARY

Published by Authority

CHANDIGARH, FRIDAY, AUGUST 28, 2015

(BHADRA 6, 1937 SAKA)

LEGISLATIVE SUPPLEMENT
Contents
Part - I Acts
Nil
Part - II
Nil
Part - III Delegated Legislation
1.   Notification No. G.S.R.47/C.A.17/1998/ S.12/2015, dated the 24th August, 2015, containing the Punjab State Lotteries Rules, 2015.
2.   Notification No.S.O.35/C.A.2/1974/S.2/2015, dated, the 26th August, 2015, transferring some villages from one Police Station to other Police Station.
Part - IV Correction Slips, Republications and Replacements
Nil

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PUNJAB GOVT. GAZ. (EXTRA), NOVEMBER 17,2005       185 (KARTIKA 26, 1927 SAKA)

PART

DEPARTMENT OF LEGAL AND LEGISLATIVE AFFAIRS, PUNJAB
Notification
The 17th November,2005

No. 31-Leg./2005 – The following Act of the Legislature of the State of Punjab received the assent of the Governor of Punjab n the 11th November,2005, and is hereby published for general information:-

THE PUNJAB TAX ON LOTTERIES ACT,2005
(Punjab Act No. 18 of 2005)
AN
ACT

To provide for the levy and collection of tax on lotteries and for the matters connected therewith or incidental thereto.

BE it enacted by the Legislature of the State of Punjab in the Fifty sixth year of the Republic of India as follows:-

1.         (1)        This Act may be called the Punjab Tax on Lotteries Act, 2005. (2)            It shall come into force at once.

2.         In this Act, unless the context otherwise requires:-

(a)        “Appellate Authority” means an officer of the Department, who has been appointed and designated by the State Government as the Deputy Excise and Taxation Commissioner (Appeals) to exercise the powers of Appellate Authority under this Act;

(b)        “Assessing Authority” means an officer of the Department, who has been appointed and designated by the State Government as the Assistant Excise and Taxation Commissioner to exercise the powers of Assessing Authority under this Act;

(c)        “Authorized Officer” means an officer authorized under section 21;

(d)       “bumper draw of lottery” means a special draw of lottery, conducted on or during any festival or any festival or any special occasion wherein the prize

money offered is greater than the prize money offered in any ordinary draw of lotteries.

(e)        “Commissioner” means the Excise and Taxation Commissioner, who has been appointed as such by the State Government for the purpose of this Act;

(f)        “Department” means the Department of Excise and Taxation Punjab;

(g)        “Deputy  Excise  and  Taxation  Commissioner”  means  an  officer  of  the Department, who has been appointed and designated as such by the State Government for the purposes of this Act;

(h)        “lottery” means a scheme, in whatever form and by whatever name called, for distribution of prizes by lot or chance to those persons participant in the chances of a prize by purchasing tickets, organized by the Government of India or the Government of a State or Union Territory or any other Country, having bilateral agreement or treaty with the Government of India;

(i)         “month” means a calendar month.

(j)         “prescribed” means prescribed by rules made under this Act;

(k)        “promoter” means the Government of India or Government of a State or any Union Territory, or any Country, which has entered into a bilateral agreement or  treaty  with  the  Government  of  India  for  organizing,  conducting  or promoting a lottery, and includes any person appointed by such Government or Country for selling lottery tickets in the State of Punjab on their behalf, where such Government or Country is not directly selling lottery tickets in the State of Punjab;

(l)         “section” means section of this Act;

(m)       “Schedule” means the Schedule appended to this Act;

(n)        “State Government” means the Government of the State of Punjab.

(o)        “week” means a period of seven days commencing from the Monday and ending on the Sunday; and

(p)        “year” means the financial year commencing from the first day of April and ending on the 31st day of March;

3.         (1)        There shall be levied and collected a tax, per draw on the lotteries at the rates, as specified in the Schedule.
             (2)        The tax levied under sub-section (1), shall be paid by every promoter.

4.         The State Government may, by notification in the Official Gazette, alter the rate of tax specified in the Schedule or add to or omit from or otherwise amend the Schedule and thereupon, the Schedule shall be deemed to have been amended accordingly;

Provided that if the Government intends to increase the rate of tax specified against any type of lottery, such a rate shall not exceed three times of the rate already existing in the Schedule.

5.         (1)        On the commencement of this Act, every promoter shall be liable for getting himself registered under this Act.Provided that a person selling lottery tickets and computerized network lottery in retail, shall not be liable to get himself registered under this Act.

(2)        The promoter shall make an application n such form, as may be specified, alongwith a fee of rupees one lac and a security of rupees ten lac to the Assessing Authority in whose jurisdiction his business premises falls.

(3)       The fee and security shall be furnished by the promoter to the Assessing Authority in the form of Bank Draft.

(4)        If a promoter has more than one place of business, then he shall get himself registered with the Assessing Authority in whose jurisdiction his principal place of business falls.

(5)        If a promoter is already registered under any law, he will not be liable for making payment of rupees one lac for getting himself registered under this Act, but he shall have to make an application in the specified form for getting himself registered under this Act alongwith a security of rupees ten lac.

(6)        If the State Government is of the opinion that it is expedient to do so, it may, by notification, revise the aforesaid rate of fee and security.

6.               Every promoter shall get his registration renewed after a period of every one year from the date of his registration in such manner and on payment of such fee, as may be prescribed.

7.         (1)        Every promoter shall submit on the first working day of every month to the Assessing Authority, a statement containing such particulars, as may be specified by the State Government, by notification relating to draws of lottery to be conducted during the month, and shall pay in advance the full amount of tax payable by him under this Act, in respect of the draws
shown in the statement.

(2)              If  a  promoter  fails  to  submit  the  statement  under  sub-section  (1), within the stipulated period or if the statement submitted by him is found to be incorrect or incomplete by the Assessing Authority, the Assessing Authority after giving the promoter an opportunity of being heard, may assess the promoter provisionally for the month to the best of his judgment, by recording reasons for such assessment within a period of fifteen days, and proceed to demand and collect forthwith the amount so assessed.

8.         If any amount of tax payable under this Act remains unpaid or due after making payment of tax in advance by the promoter, the same shall be paid immediately at the close of the month.

9.         (1)        If a promoter contravenes any of the provisions of this Act, the Assessing Authority may cancel his registration granted under this Act after affording him an opportunity of being heard.

(2)        On cancellation of the registration, the promoter shall not be entitled to sell lottery tickets within the State of Punjab.

(3)        Notwithstanding the cancellation of the registration, if the promoter makes payment of the defaulted amount subsequently, alongwith interest at the rate  of  two  percent  month  on  the  defaulted  amount,  the  Assessing Authority may, on application made by him within a period of thirty days from the date of cancellation, re-register the promoter.

(4)        In case, the promoter fails to apply for getting himself re-registered within a period of thirty days, he shall have to get himself registered afresh as per provisions of his Act making payment of defaulted amount of tax and interest.

10.       (1)        Notwithstanding anything contained in section 7, every promoter shall submit to the Assessing Authority, a monthly return within a period of seven days from the close of each month by disclosing such particulars, as may be specified by the State Government, by notification.

(2)        While submitting his return under sub-section (1), a promoter shall attach in token of proof, a receipt of advance payment of tax paid under section 7.

(3)        If after making payment of advance tax, the promoter has conducted any additional draw of lotteries, then shall also deposit the balance of tax, which had become due to the State Government for additional draw or draws, as the case may be.

(4)        If the Assessing Authority is satisfied that any return submitted under sub- section (1), is correct and complete, he shall accept the return.

(5)        If no return is submitted by the promoter under sub-section (1), or if the returns submitted to the Assessing Authority appear to be incorrect or incomplete, the Assessing Authority, shall assess the promoter to the best of  his  judgement  within  a  period  of  three  years  from  the  date  of submission of returns:

Provided that before taking any action under this sub-section, the promoter shall be given an opportunity of being heard.

11.       (1)        If in consequence of definite information, which has come into his possession, the Assessing Authority discovers that any draw has been under-assessed, or escaped assessment in any year, the Assessing Authority may, at anytime within a period of three years following the close of the year, for which any draw is proposed to be re-assessed and after giving the promoter a reasonable opportunity of being heard, proceed to re-assess the tax payable on the draw, which has been under assessed or has escaped assessment.

(2)        The Assessing Authority may at any time within one year from the date of any order passed by him and subject to such conditions, as may be prescribed, rectify and clerical or arithmetic mistake apparent from the record.

12.       (1)        Notwithstanding the period of limitation provided for assessment or re- assessment in section 10 or section 11 or in any other provision of this Act, assessment or re-assessment may be made at any time by the
Assessing Authority in consequence of or to give effect to any order made by any court or other authority, in exercise of the powers vested in it under the law for the time being in force.

(2)        Where  the  assessment  proceedings  relating  to  any  promoter  remained stayed under, the orders of any court or other authority for any period, such period shall be excluded in computing the period of limitation for assessment or re-assessment provided under this Act.

13.             The amount of any tax, penalty, interest or any other sum due and payable under this Act, which remains unpaid, after the due date, shall be recoverable as arrears of land revenue.

14.       (1)       The assessing Authority may, at any time, by giving a notice in writing, require any person from whom money is due or may become due to the promoter or to any person who holds or may subsequent hold money for or on behalf of the promoter to pay to the Assessing Authority, either forthwith upon the money becoming due or being held or within the time specified in the notice, so much of the money as is sufficient to pay the

        (2)       The Assessing Authority may, at any time, amend or revoke the notice or extend the time given in the notice for making payment.

        (3)       The payment made in compliance with the notice given under this section by any person, shall be deemed to have been made by the promoter.

        (4)       Any person discharging liability of the promoter or other person after the receipt of notice referred to above, shall be personally liable to the Assessing Authority to the extent of the liability discharged by him or to the extent of the liability of the promoter for the amount due under this Act, whichever is less.

        (5)       Where the person to whom a notice under this section has been issued, proves to the satisfaction of the Assessing Authority that the sum demanded  their  in  or  any  part  thereof,  is  not  due  by  him  to  the promoter or that he does not hold any money for or on account of the promoter, then nothing contained in this section shall be deemed to require such person to pay the sum demanded or any part thereof to the Assessing Authority.

        (6)       Any amount, which a person is required to pay to the Assessing Authority or for which he is personally liable to the Assessing Authority under this section, shall, if it remains unpaid, be a first manner specified in this Act.

        (7)       For the purpose of this section, the amount due to a promoter, or money held for or on account of a promoter by any person shall be computed after taking into account such claims, if any, as may have fallen due for payment by the promoter to such person and as may be lawfully subsisting.

15.       (1)        When the ownership of the business of a promoter other than a State Government is transferred, the transferor and the transferee shall jointly and severally be liable to pay any tax, penalty or interest remaining unpaid at the time of transfer, or any amount, which may become due and payable in respect of such business after the date of transfer. For the purpose of recovery from the transferee, such transferee shall be deemed to be the promoter, liable to pay the tax, penalty or interest due under this Act. due amount by the promoter or other person in respect of the arrears of tax or penalty or both. charge on the properties of that person and may be recovered in the

        (2)      Where any firm is liable to pay any tax, penalty or interest under this Act, the firm and each of the partners of the firm, shall be jointly and severally liable for such payment.

        (3)       When a firm liable to pay the tax or penalty is dissolved, the assessment of the tax and imposition of penalty shall be made as if no dissolution of the firm had taken place, and every person, who was at the time of dissolution, a partner of the firm and the legal representative of any such person, shall be jointly and severally liable to pay the tax or penalty assessed or imposed.

        (4)       Where a partner of a firm liable to pay any tax, penalty or interest under this Act retires, he shall, notwithstanding any contract to the contrary, be liable to pay tax, penalty or interest, remaining unpaid at the time of his retirement irrespective of the fact that any tax or penalty or interest, due up to the date of retirement, was not assessed.

        (5)       When a Hindu Undivided Family, liable to pay tax, penalty or interest is partitioned, the assessment of the tax and the imposition of penalty or interest, shall be made as if no partition of the family had taken place, and every person who was a member of the family before the partition, shall be jointly and severally liable to pay the tax, fee, penalty or interest assessed or demanded under this Act.

        (6)       Where a promoter dies, his executor, administrator or legal representative shall be deemed to be the promoter for the purposes of this Act and the provisions of this Act shall apply to him in respect of the business of the said deceased promoter. Provided that in respect of any tax, penalty, fee or interest assessed is payable by any such promoter, or any tax, penalty or fee, which would have been payable by him under this Act, if he had not died, the executor administrator or legal representative shall be liable only to the extent of the assets of the deceased in his hands.

16.       (1)        Subject to the provisions of this Act and the rules made there-under, the Assessing Authority shall, in such manner and within such period, as may be prescribed, refund to a promoter, the amount of tax, penalty or interest, if any, paid by such promoter in excess of the amount due from him. The refund may, either be by refund voucher or at the option of the promoter by refund adjustment order: Provided that the Assessing Authority shall first apply such excess amount towards the recovery of any amount due under this Act and only thereafter, shall refund the balance, if any.

(2)        Where an amount required to be refunded by the Assessing Authority to any promoter, is not so refunded to him within a period of ninety days from the date f application submitted by the promoter, a simple interest at the rate of one percent per month on the due amount shall be paid to such promoter from the date, immediately following the expiry of period of ninety days to the date of refund.

Explanation:- (a)        If the delay in granting he refund within the aforesaid period of ninety days is attributed to the promoter whether wholly or in part, the period of delay attributable to him, shall be excluded from the period for which interest is payable.

        (b)       Interest under this sub-section, shall be calculated by considering part of the month as one month.

(2)        where an order giving rise to a refund, is subject matter of an appeal or further proceedings or where any other proceedings under this Act is pending, the refund shall be made only on the finalization of appeal or proceedings, as the case may.

17.       (1)       Any person,, objecting to an order, affecting him passed under the provisions of this Act by the Assessing Authority, may, file an appeal the Appellate Authority.

            (2)       The appeal shall be preferred within a period of thirty days from the date of communication of such order.

            (3)       (a) No appeal against an order shall be entertained by the Appellate Authority, unless it is accompanied by satisfactory proof of payment of twenty five percent of the total of tax, penalty and interest, if any.

                        (b) Notwithstanding anything contained in clause (a), if the Appellate Authority is satisfied that the whole of the amount of tax, penalty and interest due from a promoter is required to be deposited before entertaining an appeal, it may direct by order for the payment of remaining amount of tax, penalty and interest or a part thereof as a pre-condition for entertaining the appeal.

           (4)       The appeal shall be preferred and verified in such manner, as may be prescribed.

           (5)        In disposing of an appeal, the Appellate Authority may, after giving the appellant a reasonable opportunity of being heard:-

(a) confirm, reduce, enhance or annul the order;

(b) set aside he order and direct the Assessing Authority to pass a fresh order after such enquiry, as may be directed; or

(c) pass such orders, as it may think fit.

(6) Every order passed on an appeal under this section, shall, subject to the provisions of sections 18 and 19, be final.

18.        (1)       The Commissioner or any other officer authorized by him, may, on his own motion or on application made to him in this behalf, call for and examine the record of any order passed or proceedings recorded under the provisions of this Act by the Assessing Authority and against which no appeal has been preferred under section 17, for the purpose of satisfying himself as to the legality or propriety of such order or as to the regularity of such proceedings insofar as it is prejudicial to the interest of the revenue and pass such order with respect thereto, as he thinks fit.

             (2) In relation to an order passed under this Act, the power under sub-section (1), shall be exercisable only within a period of two years from the date on which the order was passed.

            (3) No order shall be passed under sub-section (1) enhancing any assessment, unless an opportunity has been given to the promoter to show cause against the proposed enhancement.

19.        (1)        With a view to rectify any mistake apparent from the record, the Appellate Authority or the Revisional Authority, may, at any time within a period of two years from the date of an order passed by it, amend such order so as to rectify any mistake therein: Provided that an amendment, which has the effect of enhancing an assessment or otherwise increasing the liability of the promoter, shall not be made unless the Appellate Authority or the Revisional Authority, as the case may be, has given notice to the promoter of its intention to do so and has allowed the promoter an opportunity of being heard.

            (2) Where an order has been considered and decided in any proceedings by way of appeal or revision relating to an order referred to in sub-section (1), the authority passing such order may, notwithstanding anything contained in any law for the time being in force, amend the order under that sub-section only in relation to a matter, which has been so considered and decided.

            (3) An order passed under sub-section (1), shall be deemed to be an order passed under the same provision of law under which the original order, in which mistake was rectified, had been passed.

20.       (1)        Every promoter shall keep and maintain true and correct accounts and such other records, relating to his business showing such particulars, as may be prescribed.

            (2)        All such accounts and records shall be retained by the promoter in safe custody until the expiry of a period of three years after the end of the period to which they relate or until the assessment reaches finality, whichever is later.

            (3)        Where such promoter is a party to an appeal or revision under this Act, he shall retain, until such appeal or revision is finally disposed of, every record and accounting document that pertains to the subject matter of the appeal or revision.

21.       (1)        Any officer authorized by the State Government, not below the rank of Assistant Excise and Taxation Commissioner in this behalf for the purpose of this Act, shall have the power:-

(a)        To enter and inspect the place of business of any promoter or other person carrying on business in lottery or any other place where it is believed by such officer that such business is being carried on or accounts including documents are being kept by such promoter or person;
(b)        To direct such promoter or person to produce at such time and at such place accounts, registers and documents relating to his business activities for examination.
(c)        To enter and inspect the lottery tickets in the possession of promoter or in the possession of any other person on behalf of such promoter, wherever such lottery tickets are kept;
(d)        To enter and search such places, including the search of the promoter or person acting on behalf of the promoter found there, where concealment of facts relating to the business are suspected;
(e)        To seize any accounts, registers or documents from the promoter or other person, where he has reason to suspect that a promoter or other person is attempting to avoid or evade tax or is concealing his tax liability in any manner, after recording such reasons in writing, and to give to the promoter or any other person from whose custody such accounts, records or documents are seized, a receipt for and, if requested, copies of the same, and to retain such documents in his custody for examination, inquiry, prosecution or other legal proceedings for such period, as he considers necessary;
(f)        To seal any box or receptacle, godown or building or any part of the godown or building in which accounts or lottery tickets are suspected to be kept or stored, where the owner or any other person in charge of the business or any other person in occupation either leaves the premises or is  not available or fails or refuses to open any box or receptacle, godown or building or any part of the godown or building when called upon to do so;
(g)        To break open the box or receptacle, godown or building or part of the godown  or  building  where  the  owner  or  the  person  in  charge  of  the business or the person in occupation leaves the premises, after an opportunity having been given to him to do so, fails to open the box or receptacle, godown or building or part of the godown or building, and to prepare a list of the goods and documents found therein;
(h)        To record the statement of any promoter or his manager, agent or servant, to take extracts from the records found in any premises and to put identification marks on accounts, registers documents or goods;
(i)         To seize any stock of lottery tickets, which are found in possession of a promoter or in the possession of any person on behalf of a promoter and which are not accounted for in his accounts, records or documents maintained in the course of his business, and a list of lottery tickets including any device or contrivance used to issue lottery tickets so seized shall be prepared by such officer and a copy thereof shall be given to the promoter or any other person from whose custody such lottery tickets, device or contrivance are seized; and
(j)         To serve on the owner or the person, who is in immediate possession or control thereof, an order that he shall not remove, part with or otherwise deal with them, except with the prior consent of such officer, and after serving such order, to take such steps, as are deemed necessary to secure the items referred to in the order in circumstances where it is not possible to seize the accounts, records or documents under clause (e) or the lottery tickets under clause (i).

(2)        Where  the  records  and  accounts  under  section  20  are  maintained  by electronic means, the promoter shall provide such access to such accounts, as may be required by the officer authorized under sub-section (1).

(3)        The  accounts,  registers,  records,  including  computer  hardware  and software, and other documents seized under sub-section (1), shall not be retained by such officer for a period, exceeding one hundred and eighty days from the date of seizure, unless the reasons for retaining the same beyond that period, are recorded by him in writing, and the approval in any case shall not be for more than sixty days at a time.

(4)        It shall be presumed hat the devices, contrivances, accounts, registers or documents found at any place of the business of a promoter or any person, relate to that very business, unless the contrary is proved by that promoter or any person.

(5)        The promoter or person from whom lottery tickets have been seized under clause (i) of sub-section (1) may file an appeal before the Appellate Authority within a period of seven days against such seizure.

(6)        After the expiry of a period of seven days as specified in sub-section (5), if any tax assessed or penalty or interest due is not paid, the authorized officer shall dispose of the lottery tickets or other goods in public auction and adjust the sale proceeds towards the amount due, and the excess amount shall, after deducting the charges incurred, be refunded in the manner as may be prescribed.

22.       (1)        For the purposes of payment or assessment of tax, the burden of proving that such payment of tax on the draw relating to any lottery tickets is correct, shall lie on the promoter.

(2)        Where a promoter or other person knowingly issues or produces a false declaration, certificate or other document with a view to support or make any claim that tax has been paid on the draw relating to the lottery tickets sold or held by him, the Assessing Authority shall, on detecting such issue or production, direct the promoter or person issuing or producing such documents to pay as penalty, three times the tax due in respect of such claim.

(3)        Before issuing any direction for the payment of the penalty under this section, the Assessing Authority shall give to the promoter, an opportunity of showing cause in writing against the imposition of such penalty.

23.       (1)        A promoter, who without reasonable cause, fails to apply for registration within the stipulated period, shall be liable to a penalty of one lace rupees.

(2)        A promoter who fails to submit a statement or return or who fails to pay tax due on any statement submitted under section 7, shall be liable to a penalty of one thousand rupees for each day of default in addition to a penalty of a sum, not less than ten percent, but not exceeding fifty percent of the amount of tax due, together with the tax or interest due.

(3)        The power to levy the penalty under this section, shall be vested with the
Assessing Authority.

24.       While submitting return under sub-section (1) of section 10 to the Assessing Authority, if the promoter does not disclose the specified particulars, the Assessing Authority, may also direct the promoter to pay, in addition to the tax assessed, a penalty equal to one-half of the amount of tax due that was not disclosed by the promoter in his return or, in the case of failure to submit a return, one-half of the tax assessed.

25.       In making an assessment under sub-section (1) of section 11, the Assessing Authority, may, if it is satisfied that the escapement from assessment is due to willful non-disclosure of the draw by the promoter, it may direct the promoter

to pay in addition to the tax assessed under the said sub-section, a penalty equal to one-half of the tax so assessed.

Provided that no penalty under this sub-section shall be imposed, unless the promoter affected is afforded an opportunity of being heard.

26.            (1)  If default is committed in the payment of tax for any month, whether a statement as required under sub-section (1) of section 7, is filed or not or if the amount of tax paid is less than the amount of tax payable for any month, the promoter, defaulting payment of tax or making short payment
of tax shall, in addition to the tax, pay penalty calculated at the rate of two percent per month from the date of such default or short payment to the date of payment of such tax.

(2) The power to impose penalties under this section, shall vest with the Assessing Authority.

27.             (1) Any promoter or other person, who fails to keep and maintain proper records, in accordance with section 20, shall be liable to penalty of ten thousand rupees and, in addition, one thousand rupees per day for so long as the failure continues after being given an opportunity to show cause against such imposition of penalty.

                 (2) Any promoter or other person, who fails to retain records and accounts in accordance with section 20, after being given an opportunity of showing in writing against the imposition of a penalty, shall be liable to a penalty of twenty thousand rupees.

                 (3) The power to impose the penalties under this section shall vest with the Assessing Authority.

28.             (1) Any promoter or person who, on demand by the authorized officer, fails to produce any records or furnish any information in accordance with the requirements of this Act, after being given an opportunity of showing cause in writing against the imposition of penalty, shall be liable to a penalty of then thousand rupees and, in addition, one thousand rupees per day for so long as the failure continues.

                 (2) The power to levy the penalties under this section shall vest with the Assessing Authority.

29.             (1) Any promoter or person, who removes, or in any way tampers with, a seal attached under the provisions of clause (f) of sub-section (1) of section 21, shall be liable on conviction by a Court of competent jurisdiction to a fine of not less than five thousand rupees, but not exceeding fifty thousand rupees and for imprisonment for a period, not less than fifteen days, but not exceeding one year.

                  (2)        Any promoter or person, who is found to be in possession of unaccounted stock of lottery tickets under the provisions of clause (i) of sub-section (1) of section 21, and after being given an opportunity of showing cause in writing against the imposition of a penalty, shall be liable to penalty of
five thousand rupees.

                  (3)        The power to levy the penalty under sub-section (2), shall vest with the Authority Officer.

30.             Any person who obstructs, hinders, molests or assaults the authorized officer or any other public servant assisting him in the performance of his duties under this Act, or does anything, which is likely to prevent of obstruct any search or production of evidence, shall on conviction be liable to a fine of not less than five thousand rupees, but not exceeding  fifty thousand rupees and imprisonment for a period, not less than fifteen days, but not exceeding one year.

31.             Without prejudice to the provisions of section 23, 24, 25, 26 and 27, 28 and
29, if a promoter or any person knowingly or fraudulently takes any steps with a view to evade tax under this Act, he shall be liable to a fine of one lac rupees or double the amount of the tax evaded, whichever is higher or to the imprisonment for a period of not less than six months, but not exceeding five years or both.

32.             No Court shall take cognizance of any offence punishable under this Act, except with the previous sanction of the Commissioner.

33.             (1) Where  any  promoter  or  person  has  committed  an  offence  under  sub- section (1) of section 29, or section 31, the Assessing Authority may, on admission by such promoter or person in writing and upon his option to compound at anytime prior to the commencement of the court proceedings relating thereto, compound such offence and order the promoter or the person to pay such sum of money, as may be specified by the Assessing Authority.

Provided  that  such  some  of  money  shall  not  exceed  the  amount  of  penalty specified for that offence under this Act.

(2)        Furnishing of a cheque or any other instrument towards payment of a sum by any such promoter shall be deemed to be an application for compounding the offence.

(3)        Where  the  Assessing  Authority  compounds  an  offence  under  this section, the order referred to in sub-section (1):-

(a)        shall be in writing and specify the offence committed, the sum of money to be paid and the due date for the payment;
(b)        shall be served on the promoter or the person, who committed the offence;
(c)        shall be final and not subject to any appeal; and
(d)       may be enforced in the same manner as a decree of a court is enforced.

(4)        When  the  Assessing  Authority  compounds  and  offence  under  this section, the promoter or any person concerned, shall not be liable to prosecution in respect of such offence or to any further penalty under this section and such promoter or person shall not file any appeal against such composition.

34.       (1)        Where an offence under this section has been committed by a company, every person who, at the time, the offence was committed, was in-charge 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 be 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 provided in this Act, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2)        Notwithstanding anything contained in sub-section 91), 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, as the case may be, shall also be deemed to be guilty of that offence and shall be liable to be proceeded against punished accordingly.

Explanation:- For the purposes 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.

35.       The validity of the assessment of any tax or of the levy of any fee or other amount, made under this Act, or the liability of any promoter to pay any tax, fee or other amount so assessed or levied, shall not be questioned in any Criminal Court in any prosecution or other proceedings, whether under this Act or otherwise.

36.             (1) No suit, prosecution or other proceeding shall lie against any officer or official of the State Government for any act done or purported to be done under this Act without the previous sanction of the State Government.

                 (2) No officer or official of the State government shall be liable in respect of any such act in any civil or criminal proceeding, if the act was done by him in good faith in the course of the execution of duties or the discharge of the functions imposed by or under this Act.

                 (3) No  suit  shall  be  instituted  against  the  State  Government  and  no prosecution or other proceeding shall be instituted against any officer or official of the State Government in respect of any act done or purporting to be done by him under this Act, unless the suit, prosecution or other proceeding is instituted within six months from the date of the act complained of.

37.       Notwithstanding  anything  contained  in  any  law  passed  by  the  Punjab  State Legislature for the time being in force, no suit or other proceedings shall be entertained by any court, except as expressly provided for under this Act to set aside or modify any assessment or other proceedings commenced by virtue of the provisions of this Act, and no such court shall question the validity of any assessment,  levy  of  penalty  or  interest  or  grant  any  stay  of  proceedings  or recovery of any amount due under this Act.

38.       The officers of the State Government exercising powers and performing functions under this Act, shall have all the powers conferred on a court under the Code of Civil Procedure, 1908 (Central Act V of 1908), for the purpose of securing attendance of persons or the production of documents in any assessment, enquiry, proceedings or any such like thing under this Act.

39.       (1)       The State Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.

(2)        Every rule made under this Act, shall be laid, as soon as may be after it is made, before the House of the State Legislature while it is in session for a total period of ten days, which may be comprised in one session or in tow or more successive session and if, before the expiry of the session in which it is so laid or the successive sessions as aforesaid, the House agrees in making any modification in the rule or the House agrees that the rule should not be made, the rule shall thereafter have effect only in such modified form 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 or omitted to be done under that rule.

40.             (1) If any difficulty arises in giving effect to any of the provisions of this Act, the State Government may, by an order published in the Official Gazette, make such provision, not inconsistent with the provisions of this Act as may appear to it to be necessary for removing the difficulty; Provided that no such order shall be made after the expiry of a period of two years from the date of commencement of this Act.

                 (2) Every order made under this section, shall be laid, as soon as may be, after it is made before the Punjab State Legislature.

41.             (1) The Punjab Tax on Lotteries Ordinance, 2005 (Punjab Ordinance No. 12 of 2005), is hereby repealed..

                 (2) Notwithstanding such repeal, anything done or any action taken under the Ordinance referred to in sub-section (1), shall be deemed to have been done or taken under the corresponding provisions of this Act.