PIL in Mumbai High Court against online lottery companies for tax evasion

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A public interest litigation case has been filed in the Bombay high court seeking a probe into alleged tax evasion by companies conducting online lotteries.

It is alleged that although  Maharashtra has enacted the Lottery Tax, under  lottery companies have to pay the tax in advance.  However , the lottery companies are bypassing the law by  conducting multiple lotteries in one draw and evade tax to the tune of crores,’’ said advocate Mohan Tekavde.  The modus operandi is to announce prize money for a draw, but when there is no winner, the amount is rolled over to the next draw. They, however, pay tax for only one draw, resulting in loss to the state. It is  alleged that the companies are selling online lotteries through private cash cards, violating norms set by the Reserve Bank of India. “Crores of rupees worth of sales go unaccounted for,’’ the PIL said. The petition is scheduled to come up for hearing in June.