Business

Subhash Chandra's Companies Linked With Rs 11,808 Crore Lottery Scam

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| } June 29 , 2017 , 11:14 IST

Companies of Rajya Sabha MP Subhash Chandra's Essel Group are in the midst of investigations over the Rs 11,808 crore lottery scam in Mizoram in the North-East. According to a report by the Comptroller and Auditor General (CAG) of India presented in the Mizoram assembly 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 for the government, an amount more than its annual revenue.

According to the CAG report, the lottery distributor companies found ways to save income tax giving them unanticipated profits while the state government faced massive losses. The correct procedure as given by the Organised Lottery Act 1998 and the Lottery Regulation Rules 2010 was not followed in the submission of tenders for the lottery distribution companies, said the CAG report.

Bypassing the guidelines of the Central Vigilance Commission, the state government distributed the lottery tenders to 4 companies, namely M / S Teesta Distributors, E-Cool Gaming Solutions Pvt. Ltd, M / S NV International, and Summit Online Trade Solutions Pvt. Ltd. From the companies, the rights to the lottery draw were given to E-Cool Gaming Solutions Pvt. Ltd. and Summit Online Company.

ALSO READ: FIR Against Subhash Chandra-Led Essel Group For Embezzling Rs 100.61 Cr

The E-Cool Gaming Solutions Pvt Ltd company is associated with Rajya Sabha MP and former chairman of the Zee Group, Subhash Chandra. After securing the lottery distribution tender in Mizoram, the E-Cool Gaming Solutions Private Limited company sublet the rights to draw the lottery to Pan India Network Ltd, another company associated with Subhash Chandra.

The CAG report stated the 4 companies submitted only Rs 25.45 crore to the state government from the Rs 11,834.22 crore they earned in the lottery, giving no account of the remaining Rs 11,808 crore, in a direct violation of the lottery regulating act and rules.

ALSO READ: FIR Registered Against Zee Group Chairman Subhash Chandra And His Son

Rajya Sabha MP Subhash Chandra and his Essar Group played a major role in developing the lottery business in the nation, under the banner of Playwin Brand and secured the first online lottery distribution in Sikkim.

Channels of Chandra's Zee Media Group promoted Playwin and online lottery with tagline 'Khelo India Khelo'.

Since the CAG report was submitted in the Mizoram assembly in December 2016, Civil Rights Groups and opposition parties have demanded CBI probes into the matter.

Aashish

Well written, but not well proof read. A mistake in the last paragraph where it should've been written December 2016 instead of 2017. Kindly rectify it.