A Division Bench of the High Court of Karnataka will pronounce its order at 11 a.m. on Saturday (June 22) on whether horse races and betting activities can be held at Bangalore Turf Club (BTC) as per schedule on Saturday and Sunday.
The Bench comprising Chief Justice N.V. Anjaria and Justice K.V. Aravind reserved its interim order on the appeal filed by the State government challenging the June 18 order of a single-judge bench, which permitted the BTC to conduct racing and on-course and off-course betting activities. The judge stayed the government’s June 6 decision rejecting BTC’s application for racing and betting activities.
While seeking a stay on the permission granted by the single judge, State Advocate General Shashi Kiran Shetty contended that the government itself would continue granting permission after August. The A-G also contended that the government had denied permission as further investigation against the BTC is underway on the illegalities of bookmakers, against whom a charge sheet has already been filed for illegalities like benami transactions, non-deposit of collection of money in cash, and non-deposit of GST from punters.
BTC’s arguments
However, senior advocate S.S. Naganand pointed out that BTC is not an accused party in the criminal proceeding, and the government had not sought any details from BTC on illegalities even after the initiation of criminal proceedings against punters.
Mr. Naganand also contended that denial of permission was one of the attempts being made by the government to pressurise the BTC to vacate its present land at the centre of the city and move to the outskirts as proposed by the government. He also pointed out that the issue of land on which the race course is located is pending before the apex court.
On A-G’s contention that BTC’s chairman and CEO have been arraigned as accused persons in the charge sheet along with the bookmakers, Mr. Naganand clarified that the chairman has no independent authority to make certain decisions as he acts on the advice of the Board, which comprises the Additional Chief Secretary, Finance Department, Bengaluru City Police Commissioner, and two other members nominated by the State government.
On GST remittance
On evasion of GST remittance by the bookmakers, it was argued on behalf of the BTC, the Racehorse Owners Association, and the Trainers and Jockeys Association that the bookmakers are now liable to remit deducted GST directly to the Government and that the BTC has no role in paying in this regard under GST law. GST law has repealed the earlier Betting Tax Act, under which the BTC had the responsibility of remitting betting tax to the authorities.
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