(7) This Ordinance may be called the Lotteries (Regulation) Second Ordinance,
1997.
(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.
Short title, extent and commencement.
2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— Definitions. 2. In this Ordinance, unless there is anything repugnant in the subject or context,—
(a) "lottery" means 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;
(b) "prescribed" means prescribed by rules made under this Ordinance.
Prohibition of lotteries,
3. Save as otherwise provided in section 4, no Slate Government shall organise, conduct or promote any lottery.
Conditions subject to which lotteries maybe organised, etc,
4. A State Government may organise, conduct or promote a lottery, subject to the following conditions, namely:—
(a) prizes shall not be offered on,any preannounced number or on the basis of a single digit;
(b) the State Government shall print thi lottery tickets bearing the imprint and logo of the State in such manner that the authenticity of the lottery ticket is ensured;
(<r) the State Government shall sell the tickets either itself or through distributors or selling agents;
(d) the State Government itself shall conduct the draws of all the lotteries;
(e) tlic 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;
(/) the place of draw shall be located within the State concerned;
(g) no lottery shall have more than one draw in a week;
(h) the draws of all kinds of lotteries shall be conducted between such period of the day as may be prescribed by the State Government;
(0 the number of bumper draws of a lottery shall not be more than six in a calendar year;
(/) such other conditions as may be prescribed by the Central Government.
Prohibition of sale of ticket in a State.
5. A State Government may, within the State, prohibit the sale of tickets of a lottery organised, conducted or promoted by another State.
Prohibition of organisation, etc., of lottery.
6. The Central Government may, by order published in the Official Gazette, prohibit a lottery organised, conducted or promoted in contravention of the provisions of section 4 or where tickets of such lottery are sold in contravention of the provisions of section 5.
Penalty. 7. If any person acts as an agent, a promoter or trader in any lottery organised, conducted or promoted in contravention of the provisions of this Ordinance 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.
Offences to be cognizable and non-bailable.
8. The offence under this Ordinance shall be cognizable and non-bailable.
Offences by companies.
9. (V) V'here an offence under this Ordinance has been committed by a company, every j-iison who at the time the offence was committed was in charge of, and was responsible to, the company fcr ttw conduct of the business of the company, as well as the company, sfnll be deemed to be guilty of the offence and snail 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 exercised all due diligence to prevent the commission of such offence.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 3
(2) Notwithstanding anything contained in sub-section (7), where an offence under this Ordinance has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is uitribucable to any neglect on the part of, any diretor, manager, secretary or other off1 :er of the company, such director, manager, secretary or other officer shall also be itemed 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 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 Ordinance or of any rule made thereunder.
Power to give directions.