By Our Reporter
SHILLONG: Undeterred by the reverses suffered in previously, the State Government is exploring the possibilities of reviving the online lottery in the State.
The Government is looking for a new private partner to run the online lottery as the ten-year deal signed in 2001 with MS Associates to operate the online lottery in the State came to an end on August 22.
“We have already started the spade work for reviving the online lottery,” a senior government official informed here on Sunday.
The official informed that the Government would be taking all necessary precautions to ensure that the fresh online lottery deal does not meet the same fate like the previous one which had resulted in huge revenue loss to the State exchequer.
“We have already analyzed and studied the lapses in the previous deal which had allowed the private firm to manipulate with the clauses in the agreement by delaying the payment of dues to the Government. This time we would be incorporating more stringent clauses in the agreement which would be formulated soon,” the official said.
While informing that the Centre has come up with the new Lottery (Regulation) Rules, 2010, the official said, “We would have to formulate the new agreement in accordance with these rules.”
While declining to give a tentative date for revival of the online lottery, the official said that the Government would invite the Expressions of Interests (EOIs) once the decision is finalised.
It is noteworthy that the State Government is yet to get dues worth Rs 25 crore dating back to 2002 from MS Associates which was running the online lottery in Meghalaya.
The firm, despite several attempts by the government, is yet to pay the amount to the government.
Commissioner and Secretary (Taxation), PW Ingty, had earlier informed that the Department had been asked to come up with necessary papers to get back the money from MS Associates.
“We are concerned over the matter and the Department is working on measures to get back the money,” Ingty had said.
The government had signed an agreement with MS Associates in 2001 to conduct the online lottery with a guaranteed amount of Rs 3 crore to the government in the first year.
However, after protests from pressure groups and the Opposition, the agreement was amended in 2002 under which the company had to pay not less than Rs 12 crore a year and it could conduct not less than 4,000 draws per year.
In October 2004, MS associates asked the State Government to reduce the minimum guaranteed amount from Rs 12 crore to Rs 6 crore per year. Later in 2005, the company arbitrarily stopped the online lottery business in the State.
According to the CAG audit report, during the four years of operation from 2002 to 2005, the distributor was liable to pay Rs 54.08 crore according to terms of the agreement signed with the Meghalaya Government. But the company had paid only Rs 19 crore leaving a balance of Rs 35.08 crore.
Earlier, expressing its inability to pay the amount mentioned in the amended agreement, the company had even written to the state government in January 2005 to treat the online lottery on a par with the paper lottery.
An official with the Taxation department said the government in January 2006 had constituted a Negotiation Committee to examine the suggestion of MS Associates with an aim to get back the pending amount.
The view of the Committee was that the government could not treat online lottery on par with paper lottery.
The official said that a feasible option for the government was to go for an ‘out-of-court settlement’ with MS Associates.
“If the company still does not respond, we will have to move court,” he added.