SANTOSH ENTERPRISES AMRAVATI Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) The petitioners are dealers in plots and various costly consumer goods, such as T. V. sets, mopeds, refrigerators etc. They advertise various schemes by which members of the public interested in purchasing the plots/articles are invited to enrol themselves as members. The number of members registered ranges from 150 to 250. Specified price of the article is to be paid in 40 monthly instalments. Every month one draw is taken out. The member whose name is declared in the draw is entitled to get the plots/article without being required to pay the further instalments. Lucky person from that stage ceases to be a member of the scheme. This exercise goes on for 40 months on expiry of which the unlucky remaining members are entitled to get the plots/article at a specified price or refund without interest of the amounts deposited.

(2.) As against 6 of the petitioners, offences under S. 4 of the Bombay Lotteries (Control and Tax) and Prize Competitions (Tax) Act, 1958 (the Act) are registered and their business premises have been raided during the course of investigation of the offences. The other petitioners are apprehensive of similar actions against them. They have rushed to this Court making a grievance that the schemes promoted by them are perfectly legal and valid, they do not violate any provisions of the Act and have prayed that by appropriate writ, order or direction the registration of the offences should be quashed and the police machinery be restrained from conducting raids or any further investigation in the matter. Pivotal question is - such a Scheme a "lottery" as envisaged in the Act?

(3.) The object of the Act is to control lotteries and prize competitions in the State of Bombay. S. 2(1) defines 'lottery' as follows :