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Kerala protests against ban on lotteries

D Jose in Trivandrum

The central government's decision to ban lotteries has evoked strong protests from various quarters in Kerala, which has consistently opposed such a step.

State Finance Minister T Sivadasa Menon said the decision, announced by Information and Broadcasting Minister Pramod Mahajan on Tuesday, would throw not only the Rs1 billion "fortune industry" into a serious crisis but also the entire economy of the state.

He hinted that the state might not implement the ban, as all political parties in the state are in favour of the lottery, which, he said, is conducted very systematically in Kerala.

"The expert opinion the government has received suggests the implementation is possible only if the state legislative assembly adopts a resolution in this regard. The Kerala assembly may not adopt such a resolution in view of the serious implications the ban would have on the employment front and the economy," Menon said, adding, "We will also try everything possible to prevent the legislation being introduced in Parliament."

Menon urged all members of Parliament from the state to fight the matter out in Parliament. He also asked all political parties to oppose the "ill-advised" decision.

The minister said the ban would render jobless nearly 30,000 agents, 250,000 sub-agents, 500 employees in the state lottery department, and hundreds of workers in government presses where the tickets are printed. Moreover, many of the sub-agents are children, disabled and old people, he said.

"This will create a serious social problem in a state where about four million educated youths are unemployed," he said.

The lottery industry in Kerala has a turnover of Rs1.05 billion, contributing Rs130 million as profit in 1996-97 and Rs150 million in 1997-98. The profit this financial year is expected to cross Rs170 million, the minister said.

Menon said the Kerala lottery industry also contributed Rs150 million as income-tax to the central exchequer.

He said the ban has come at a time when the state is facing a financial crisis fuelled by the fall in prices of cash crops. He said the central government had gone ahead with the ban despite the state making its views clear.

While the Union Cabinet has decided to launch a scheme to compensate the loss of revenue in the north-eastern states, no such concession has been made in the case of Kerala, he said.

Kerala Lottery Agents Association president K M George said it was cruel to ban lotteries since that would affect the livelihood of thousands of physically disabled and economically disadvantaged sections of society.

He said the decision to ban the lottery before the closure of the financial year would put the sellers in a tight spot. It will also affect the Kerala Vishu Bumper sale, which is now on.

George urged the government to provide alternative jobs or a compensation of Rs300,000 to those who will lose employment as a result of the ban.

Kerala Lottery Officers Association president S Viswambaran said it was not proper to slap a total ban on lotteries because of irregularities that occurred in some parts of the country.

As the tickets are printed in government presses, the government decides the number of tickets and series to be printed. The distribution network is also very systematic, Viswanathan said.

The lottery agents feel that instead of a blanket ban, the government should have tried to eliminate the corrupt in the industry without punishing honest people.

A lottery department official pointed out that the dubious private and single-digit lotteries are not allowed in Kerala and the system is transparent.

The Kerala lottery launched in 1967 now runs four weekly lotteries -- Maveli (Rs2), Periyar (Rs3), Soubhagya (Rs10) and Kairali (Rs5). Besides, there are bumper tickets every month and during major festivals.

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