INVESTIGATION AND REPORT:
How MP Subhash Chandra is involved in corruption and misleading the country about the fight against corruption.
MATTER
In December 2016, there was extensive negligence and discrepancies in the state government’s lottery operations which resulted in the loss of more than Rs 11,000 crore an amount more than its annual revenue.
They evaded income tax by providing unexpected gains to individuals, while the state government suffered significant losses. The CAG report stated that the correct procedure outlined in the Organised Lottery Act 1998 and the Lottery Regulation Rules 2010 was not followed.
The state government disregarded the guidelines of the Central Vigilance Commission by awarding lottery tenders to 4 companies. E-Cool Gaming Solutions Pvt. Ltd, owned by Rajya Sabha MP and former Zee Group chairman Subhash Chandra, was granted the rights to conduct the lottery draw. After winning the lottery distribution tender in Mizoram, E-Cool Gaming Solutions Private Limited leased the lottery draw rights to Pan India Network Ltd, another company associated with Subhash Chandra. It’s important to note that Rajya Sabha MP Subhash Chandra and his Essar Group played a significant role in the development of the lottery business in the country.
The Mizoram State Lottery was introduced to augment the revenue of the State for the purpose of health care, education, public sanitation and other social sector services. Running of the Mizoram State Lottery was mainly controlled by the distributors while State Government was left with its revenue limited to Minimum Guaranteed Revenue (MGR). Out of the total sale proceeds of Rs. 11,834.22 crore during 2012-13 to 2014-15, the distributors deposited only Rs. 25.45 crore {as Minimum Guaranteed Revenue (MGR) and Administrative Expenses} to the Consolidated Fund of the State. The distributors neither deposited the balance amount of Rs. 11,808.77 crore to the Consolidated Fund of the State nor was it demanded by the Government. Against the revenue accrued to the distributors of Rs. 2,182.79 crore (18.44 per cent of the gross sale) during 2012-13 to 2014-15, the Government received a paltry revenue of Rs. 25.45 crore (0.22 per cent of the gross sale) because fixing the revenue realizable from lottery per draw at the MGR had no relation to the volume of sale of lottery tickets. This resulted in loss of revenue and undue financial benefit to the distributors.
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