Karnataka High Court stays decision to temporarily allow horse racing, betting at Bangalore Turf club

The Karnataka High Court on Saturday stayed a June 18 single-judge order that had temporarily permitted the Bangalore Turf Club (BTC) to conduct on-course and off-course horse racing and betting [State of Karnataka and ors. v. Bangalore Turf Club and ors]

A Division Bench of Chief Justice NV Anjaria and Justice KV Aravind pronounced the order today on a writ appeal filed by the State government against the single-judge order.

The Court concluded that the State had presented a strong prima facie case and that it appeared to have refused to grant a license to conduct horse racing and betting for germane reasons.

“The order of single-judge is hereby suspended and stayed. The respondent-original petitioner club is prohibited from conducting on-course and off-course horse racing and betting even during the pendency of the petition (challenging refusal to grant licence), subject to the outcome of the petition,” the Court said today while dictating the operative portion of the order.

The dispute before the High Court concerns the State Home Department’s order refusing a racing license and the Finance Department’s order refusing a betting license to BTC. Both orders were passed on June 6.

This refusal was challenged by way of a batch of writ petitions not only by the BTC but also by the Karnataka Race Horse Owner’s Association, the Karnataka Trainers Association, punters (those who engage in betting) and the Jockeys’ Association of India.

The petitioners highlighted that racing and betting activities had been carried out for over a century without hindrance. It was argued that more than 20,000 people directly and indirectly depend on horse racing and that it produces more than ₹1 crore tax daily.

On the other hand, the State argued that BTC was wholly responsible for the illegal betting being carried out, which led to the refusal to grant a license. BTC does not have a vested right to be granted a license, the State said. The State further contended it had faced a loss of ₹296 crore on account of tax evasion.

In a June 18 interim order, the single-judge Bench of Justice SR Krishna Kumar observed that the State government’s orders refusing racing and betting licenses to the BTC were violative of the principles of natural justice.

Justice Kumar found that BTC was not granted a reasonable opportunity to make their case for a grant of licence and that the show cause notice issued to them lacked material particulars.

Therefore, the single-judge granted the petitioners interim relief and said that the BTC could resume on-course and off-course horse racing and betting activities during the pendency of their petition.

The State government challenged this interim order before a Division Bench, which has now suspended the order.

The Division Bench added that the question of whether petitioners apart from the BTC have locus standi (legal standing) to pursue their writ petitions is kept open.

Judgment copy awaited.