KARNATAKA STATE LOTTERY RULES, 1999

 

PREAMBLE

Whereas, the draft of the Karnataka State Lottery Rules, 1999, which the Government of Karnataka has proposed to make in exercise of the powers conferred by Section 12 of the Lotteries (Regulation) Act, 1998 (Central Act 17 of 1998), was published in Notification No. FD 117 SAVULA 97, dated 29-12-1999 in Part IV, Section 2-C(i) of the Karnataka Gazette, Extraordinary, dated 29th day of December, 1999, inviting objections and suggestions from the persons likely to be affected thereby within fifteen days from the date of its publication in the Official Gazette.

And whereas, the said Gazette was made available to the public on 29-12-1999.

And whereas, the objections/suggestions received have been considered by the State Government.

Now, therefore, in exercise of the powers conferred by Section 12 of the Lotteries (Regulation) Act, 1998, (Central Act 17 of 1998), the Government of Karnataka hereby makes the following rules, namely.--

Rule - 1. Title and commencement.

(a)      These rules may be called the Karnataka State Lottery Rules, 1999.

(b)      They shall come into force from the date of their publication in the Official Gazette.

Rule - 2. Definitions.

In these rules, unless the context otherwise requires.--

(a)      "Act" means the Lotteries (Regulation) Act, 1998 (Central Act 17 of 1998);

(b)      "Agent" means an Agent appointed under Rule 9;

(c)      "Committee" means the Committee constituted under Rule 4;

(d)      "Director" means the Director of Small Savings and State Lottery, Government of Karnataka;

(e)      "Form" means form appended to these rules;

(f)       "Government" means the Government of Karnataka;

(g)      "Prize Amount" means the prize amount payable to a prize winning ticket in a lottery draw;

(h)     "State" means the State of Karnataka;

(i)       "State Lottery" means Karnataka State Lottery Scheme formulated by the Government of Karnataka for distribution of prizes by lot or chance to the persons participating in the chances of a prize by purchasing tickets;

(j)       "Ticket" means the Karnataka State Lottery Ticket released for sale by the Government;

(k)      "Winner" means a person who possesses the winning Karnataka State Lottery Ticket.

Rule - 3. Administering and implementing State Lottery.

The State Lottery shall be conducted by the Government. The State Lottery Scheme shall be administered by the Principal Secretary to Government, Finance Department/Head of Finance Department, Government of Karnataka. The Director shall implement the State Lottery Scheme as determined by the Government from time to time.

Rule - 4. Conduct of State Lottery.

(1)     The State Lottery shall be conducted by the Government in the presence of the Committee constituted by it, which shall consist of the following members, namely.--

(2)     In the absence of the Chairman, the Vice-Chairman of the Committee shall act in his place and conduct the draw. The Chairman and Vice-Chairman may nominate one of their subordinates to represent them in their absence. In the absence of the nominated member of the agent, the agent appointed under Rule 9, may nominate another person to represent the agent. In case, both the Chairman and the Vice-Chairman are not present, members present shall conduct the draw.

Rule - 5. Denomination of ticket.

The tickets for the State Lottery shall be issued in denomination specified by the Government through an order in respect of a draw or groups of draws.

Rule - 6. Mode of issue of tickets.

The tickets shall be issued in distinct and separate series and each such series shall be distinguished by a design and distinct alphabetical notation. The tickets shall be serially numbered. Each ticket shall bear the signature in facsimile of the Principal Secretary/Head of the Finance Department, Government of Karnataka. Each ticket shall be assigned a secret mark by the Director. Such mark may be changed from ticket to ticket and from series to series. Such secret marks shall be in the safe custody of the Director.

Rule - 7. Decision regarding date of draw, etc.

The following matters in respect of each draw or group of draws, shall be decided by the Government, namely.--

(a)      the date and time of draw;

(b)      the total number of tickets to be released;

(c)      the number of series;

(d)      the number of tickets per series;

(e)      the commencing and ending number of tickets in each series;

(f)       the price of each ticket;

(g)      the number of prizes and the value of prizes to be given in each draw or group of draws.

Rule - 8. Printing of tickets.

(1)     The printing of lottery tickets, along with counterfoils bearing the imprint and logo of the State, shall be got done by the Director.

(2)     Printing of lottery tickets shall be entrusted to any security printing press by obtaining tenders after ensuring the secrecy and security of printing of tickets. The Director should regularly inspect the security press and ensure the security and capability of the press.

Rule - 9. Agent to sell the State lottery tickets.

(1)     The Government reserves its right to appoint any organization or person as an agent to sell the State lottery tickets on behalf of the Government. The agent shall enter into an agreement with the Government or the Director if so authorised by the Government regarding the terms and conditions of sale of lottery tickets within Karnataka and outside Karnataka, excluding a "Lottery Free Zone" State.

(2)     In case of violations of terms and conditions stipulated in the agreement entered into between the Government or the Director, as the case may be, and the agent, the Government reserves its right to cancel the agency, by serving one month's notice.

(3)     In the event of cancellation of the agency of the agent, appointed under Rule 9, the Government reserves its right to appoint any organisation or person as dealer or agent.

(4)     The agent may appoint any number of dealers or sub-agents for the sale of lottery tickets within or outside the State and shall furnish the details of such dealers or sub-agents to the Director within 10 days and shall also inform cancellation of any dealership or sub-agency immediately.

(5)     The agent shall ensure that the lottery tickets are not sold in "Lottery Free Zone" States or Union Territories.

Rule - 10. Date and Time of Draw.

The date and time of draw shall be indicated on the tickets. The Director may postpone the date and time of draw to any other date and time. The Director shall publish the postponed date and time of draw in Newspapers:

Provided that the draws shall be conducted between 10 a.m. and 5 p.m.

Rule - 11. Place of Draw.

(1)     The place of any draw shall be decided by the Director. The agent shall give wide publicity about the same.

(2)     The place of draw shall be located within the State.

Rule - 12. Unsold tickets.

(1)     The tickets remaining unsold shall not be eligible for the Bumper Prize or First Prize or Second Prize in any draw.

(2)     In the event of an unsold ticket getting any of the first two prizes in each series, and the Bumper Prize or Prizes, if any, the draw shall be repeated till any of the sold lottery ticket number gets the prize.

Rule - 13. Winning of Prizes.

(1)     If in a category of prizes, a ticket number wins a prize for the second time, such ticket number shall be again drawn and the draw shall then be repeated until a different ticket number wins a prize.

(2)     No lottery ticket shall be eligible for more than one prize in any draw:

Provided that in the event of a ticket winning more than one prize, such ticket shall be eligible only for the highest prize.

Rule - 14. Release of Schemes.

The Government may release such number of State Lottery Schemes in conformity with the Act.

Rule - 15. Procedure for drawing winning number.

(1)     A list indicating the notation of the series, the numbers of tickets issued for sale and numbers of unsold tickets duly attested by the agent shall be made available to the Committee before the commencement of the draw.

(2)     The draw shall be conducted before the public and in the presence of the Committee.

(3)     There shall be seven manually operated rotating drums in a row, as shown below. The drums shall bear the following identification labels.

(4)     The seven drums with operating persons shall be arranged in such a way that it is open to the public and visible to the Members of the Committee and the public assembled at the place of draw. Before commencing the draw the public shall be called near the drums for inspection, to see whether the drums kept for the lottery draw are empty. After this inspection by the public, the nickel/plastic coins which are covered by plastic pouches shall be again shown to the public and it shall be put into the drum. After putting the nickel/plastic coins covered in a plastic pouch, the public shall be called to pick up the coins in each drum. First, the notation of series shall be picked up and it shall be displayed on the board, and this drum shall be removed from the row. The second drum which is the digit of lakh shall contain the coins as per the structure of the draw. In the drums 3 to 7 there shall be coins from 0 to 9 as per the structure of the draw. The public assembled in the place of draw shall be called to pick up one coin in each drum and announce that number. The officer in-charge shall announce the number and numbers shall be displayed on the board. After the 6 digits are picked up in the same manner, the winning ticket number will be announced on the board and it is declared as the winning ticket number as per the structure. Further winning ticket numbers shall be drawn according to the structure of the scheme as approved by the Government.

(5)     In case Bumper, First or Second prize number is found in the list of unsold tickets, the draw shall be repeated in accordance with Rule 12 under the supervision of the Committee till any of the sold ticket number gets the prize,

(6)     The Committee shall make a note of the prize winning numbers. The list of all the prize winning numbers should be cross checked with the prize winning numbers entered in the register.

(7)     The result of the draw shall be announced under the signature of the Director and released to the press by the Agent.

(8)     After the digits of the prize winning numbers are drawn and displayed on the number board, the prize winning numbers shall be entered in a register, and those entries in the register shall be signed by the members of the Committee or their nominees, who are present at the time of such draws.

(9)     After the draw is over, all records including the register referred to in sub-rule (8) shall be kept in the custody of the Director for a minimum period of three years after which they shall be destroyed. As regards to the tickets, the maximum period shall be 5 years from the date of draw:

Provided that such records and tickets shall be kept beyond the aforesaid period only when they are required for statutory audit or for production in the Court of law.

(10)   Wide publicity shall be given to the result of the draw. Such list shall also be published in the Official Gazette and in such other manner which shall constitute the official announcement of the results.

Rule - 16. Payment of prize amount.

(1)     The Director is authorised to make payment against the prize winning tickets. Further, the Director is authorised to make arrangements for payment of lower denomination prizes of Rupees Five Thousand and below, with the agent.

(2)     A person who possesses any genuine prize winning ticket to claim prize amount shall apply along with genuine prize winning ticket in Form I along with two passport size photographs duly attested by a Gazetted Officer, a domicile certificate and any other details required by the Director for payment of prize amount:

Provided that where the prize amount does not exceed Rupees Five Thousand, it may be disbursed without obtaining a claim in the said form but on presentation of the winning ticket with date and signature, on the revenue stamp of appropriate value and the name and address of the prize winner shall also be obtained on the reverse of such prize winning ticket.

(3)     No person shall be eligible for the prize amount unless the prize winning ticket is surrendered to claim such amount.

(4)     No joint claim on any prize winning ticket shall be recognised from any group of individual formed for the purpose of sharing prizes among themselves.

(5)     The prize amount payable on a prize winning ticket, the value of which is rupees five thousand and above, shall be claimed in person after the expiry of three days from the date of draw:

Provided that if the Director is satisfied that a prize winner cannot appear in person for any bona fide reasons, he may entertain the claim of the prize winner sent through a Nationalised/Scheduled/Co-operative Bank or through a person duly authoirsed.

(6)     Any claim made through any other mode will not be entertained.

(7)     Where the prize amount is rupees One Lakh and above, twenty-five per cent of the prize amount shall be paid in the form of National Savings Certificates or any other National Savings Securities with a maturity period of 6 years or more and balance prize amount shall be paid by cheque subject to deduction of Income-tax payable on the prize amount.

(8)     Prize amount for any prize winning ticket against which a case is filed in any Court of law should not be paid unless such case is settled.

Rule - 17. Verification of ticket.

(1)     The Director shall receive the claim for prize winning ticket after verifying with the results announced. The tickets produced shall be admitted for payment only after receipt of genuinely report from the Government Forensic Laboratory.

(2)     If the genuineness of the ticket referred to the Laboratory is not established and the report indicates any tampering, superimposing, altering of number or erasing etc., the claim shall be rejected and legal action shall be initiated against the claimant.

(3)     The claims for prizes based on mutilated, torn or disfigured tickets shall be rejected if it is not possible to verify the genuineness of the ticket. The prize amount of such tickets shall be disbursed, only if the ticket is found genuine on verification.

(4)     Where any investigation by the Income-tax Department is pending, the claim on the ticket may be considered subject to the result of such investigation and the amount shall be payable after deducting the Income-tax dues, if any.

(5)     In such cases, the decision of the Director shall be final.

Rule - 18. Claiming of prize amount.

(1)     The prize amount shall be claimed within ninety days from the date of draw. If there is a failure to claim the prize amount in respect of any draw within the specified period of ninety days from the date of such draw, the prize amount shall lapse and stand forfeited to the Government. If ninetieth day is a holiday, the claim can be accepted during office hours of the next working day.

(2)     Notwithstanding anything contained in sub-rule (1), the Director may entertain claims for the prize amount made beyond the period specified in sub-rule (1) but within the next thirty days where he is satisfied that such delay is for reasons beyond the control of the claimant.

(3)     The prize amount unclaimed within the stipulated time limit or not otherwise distributed shall become the property of the Government.

Rule - 19. Proceeds of sale of tickets.

The proceeds from the sale of tickets shall be credited by the agent with the approval of the Director to the consolidated fund of the State under the appropriate budget head as per agreement.

Rule - 20. Conduct of lottery within the State by other Countries, States and Union Territories.

(1)     Nothing contained in these rules shall affect the conducting, organising or promoting lottery within the State by any country having bilateral agreement or treaty with the Government of India, which shall be governed only by the terms of such agreement or treaty.

(2)     Every other State or Union Territories or any country having bilateral agreement or treaty with Government of India conducting/organising or promoting lottery as per Section 4 of the Act, shall submit to the Director following documents and details in Form II, namely.--

(1)     The details as per Section 4 of the Act;

(2)     Copy of the rules if any, made under Section 12 of the Act;

(3)     Details of the structure of every lottery scheme and any further addition or deletion to the scheme made from time to time;

(4)     Details of the distributors or selling agents appointed for selling its lottery tickets in the State and the cancellation and fresh appointment thereof;

(5)     Details of procedure specified by the concerned State Government/ Country for conducting the lottery draws and disbursing the prize amount;

(6)     Details of the designated authority or body entrusted to conduct the lottery draw by the concerned State Government/Country;

(7)     Details of the procedure for publishing the lottery results.

Rule - 21. Interpretation of Rules.

If any question arises as to the interpretation of these rules or any other matter not expressly provided for in these rules; the matter shall be referred to the Government in Finance Department and the decision of the Government on such question shall be final.

Rule - 22. Repeal and Savings.

The Karnataka State Lottery Rules, 1983, are hereby repealed:

Provided that such repeal shall not affect.--

(a)      The previous operation of the said rules or anything duly done or suffered there under; or

(b)      Any right, privilege, obligation or liability acquired, accrued or incurred under the said rules.

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KARNATAKA STATE LOTTERY RULES, 1999

 

PREAMBLE

Whereas, the draft of the Karnataka State Lottery Rules, 1999, which the Government of Karnataka has proposed to make in exercise of the powers conferred by Section 12 of the Lotteries (Regulation) Act, 1998 (Central Act 17 of 1998), was published in Notification No. FD 117 SAVULA 97, dated 29-12-1999 in Part IV, Section 2-C(i) of the Karnataka Gazette, Extraordinary, dated 29th day of December, 1999, inviting objections and suggestions from the persons likely to be affected thereby within fifteen days from the date of its publication in the Official Gazette.

And whereas, the said Gazette was made available to the public on 29-12-1999.

And whereas, the objections/suggestions received have been considered by the State Government.

Now, therefore, in exercise of the powers conferred by Section 12 of the Lotteries (Regulation) Act, 1998, (Central Act 17 of 1998), the Government of Karnataka hereby makes the following rules, namely.--

Rule - 1. Title and commencement.

(a)      These rules may be called the Karnataka State Lottery Rules, 1999.

(b)      They shall come into force from the date of their publication in the Official Gazette.

Rule - 2. Definitions.

In these rules, unless the context otherwise requires.--

(a)      "Act" means the Lotteries (Regulation) Act, 1998 (Central Act 17 of 1998);

(b)      "Agent" means an Agent appointed under Rule 9;

(c)      "Committee" means the Committee constituted under Rule 4;

(d)      "Director" means the Director of Small Savings and State Lottery, Government of Karnataka;

(e)      "Form" means form appended to these rules;

(f)       "Government" means the Government of Karnataka;

(g)      "Prize Amount" means the prize amount payable to a prize winning ticket in a lottery draw;

(h)     "State" means the State of Karnataka;

(i)       "State Lottery" means Karnataka State Lottery Scheme formulated by the Government of Karnataka for distribution of prizes by lot or chance to the persons participating in the chances of a prize by purchasing tickets;

(j)       "Ticket" means the Karnataka State Lottery Ticket released for sale by the Government;

(k)      "Winner" means a person who possesses the winning Karnataka State Lottery Ticket.

Rule - 3. Administering and implementing State Lottery.

The State Lottery shall be conducted by the Government. The State Lottery Scheme shall be administered by the Principal Secretary to Government, Finance Department/Head of Finance Department, Government of Karnataka. The Director shall implement the State Lottery Scheme as determined by the Government from time to time.

Rule - 4. Conduct of State Lottery.

(1)     The State Lottery shall be conducted by the Government in the presence of the Committee constituted by it, which shall consist of the following members, namely.--

(2)     In the absence of the Chairman, the Vice-Chairman of the Committee shall act in his place and conduct the draw. The Chairman and Vice-Chairman may nominate one of their subordinates to represent them in their absence. In the absence of the nominated member of the agent, the agent appointed under Rule 9, may nominate another person to represent the agent. In case, both the Chairman and the Vice-Chairman are not present, members present shall conduct the draw.

Rule - 5. Denomination of ticket.

The tickets for the State Lottery shall be issued in denomination specified by the Government through an order in respect of a draw or groups of draws.

Rule - 6. Mode of issue of tickets.

The tickets shall be issued in distinct and separate series and each such series shall be distinguished by a design and distinct alphabetical notation. The tickets shall be serially numbered. Each ticket shall bear the signature in facsimile of the Principal Secretary/Head of the Finance Department, Government of Karnataka. Each ticket shall be assigned a secret mark by the Director. Such mark may be changed from ticket to ticket and from series to series. Such secret marks shall be in the safe custody of the Director.

Rule - 7. Decision regarding date of draw, etc.

The following matters in respect of each draw or group of draws, shall be decided by the Government, namely.--

(a)      the date and time of draw;

(b)      the total number of tickets to be released;

(c)      the number of series;

(d)      the number of tickets per series;

(e)      the commencing and ending number of tickets in each series;

(f)       the price of each ticket;

(g)      the number of prizes and the value of prizes to be given in each draw or group of draws.

Rule - 8. Printing of tickets.

(1)     The printing of lottery tickets, along with counterfoils bearing the imprint and logo of the State, shall be got done by the Director.

(2)     Printing of lottery tickets shall be entrusted to any security printing press by obtaining tenders after ensuring the secrecy and security of printing of tickets. The Director should regularly inspect the security press and ensure the security and capability of the press.

Rule - 9. Agent to sell the State lottery tickets.

(1)     The Government reserves its right to appoint any organization or person as an agent to sell the State lottery tickets on behalf of the Government. The agent shall enter into an agreement with the Government or the Director if so authorised by the Government regarding the terms and conditions of sale of lottery tickets within Karnataka and outside Karnataka, excluding a "Lottery Free Zone" State.

(2)     In case of violations of terms and conditions stipulated in the agreement entered into between the Government or the Director, as the case may be, and the agent, the Government reserves its right to cancel the agency, by serving one month's notice.

(3)     In the event of cancellation of the agency of the agent, appointed under Rule 9, the Government reserves its right to appoint any organisation or person as dealer or agent.

(4)     The agent may appoint any number of dealers or sub-agents for the sale of lottery tickets within or outside the State and shall furnish the details of such dealers or sub-agents to the Director within 10 days and shall also inform cancellation of any dealership or sub-agency immediately.

(5)     The agent shall ensure that the lottery tickets are not sold in "Lottery Free Zone" States or Union Territories.

Rule - 10. Date and Time of Draw.

The date and time of draw shall be indicated on the tickets. The Director may postpone the date and time of draw to any other date and time. The Director shall publish the postponed date and time of draw in Newspapers:

Provided that the draws shall be conducted between 10 a.m. and 5 p.m.

Rule - 11. Place of Draw.

(1)     The place of any draw shall be decided by the Director. The agent shall give wide publicity about the same.

(2)     The place of draw shall be located within the State.

Rule - 12. Unsold tickets.

(1)     The tickets remaining unsold shall not be eligible for the Bumper Prize or First Prize or Second Prize in any draw.

(2)     In the event of an unsold ticket getting any of the first two prizes in each series, and the Bumper Prize or Prizes, if any, the draw shall be repeated till any of the sold lottery ticket number gets the prize.

Rule - 13. Winning of Prizes.

(1)     If in a category of prizes, a ticket number wins a prize for the second time, such ticket number shall be again drawn and the draw shall then be repeated until a different ticket number wins a prize.

(2)     No lottery ticket shall be eligible for more than one prize in any draw:

Provided that in the event of a ticket winning more than one prize, such ticket shall be eligible only for the highest prize.

Rule - 14. Release of Schemes.

The Government may release such number of State Lottery Schemes in conformity with the Act.

Rule - 15. Procedure for drawing winning number.

(1)     A list indicating the notation of the series, the numbers of tickets issued for sale and numbers of unsold tickets duly attested by the agent shall be made available to the Committee before the commencement of the draw.

(2)     The draw shall be conducted before the public and in the presence of the Committee.

(3)     There shall be seven manually operated rotating drums in a row, as shown below. The drums shall bear the following identification labels.

(4)     The seven drums with operating persons shall be arranged in such a way that it is open to the public and visible to the Members of the Committee and the public assembled at the place of draw. Before commencing the draw the public shall be called near the drums for inspection, to see whether the drums kept for the lottery draw are empty. After this inspection by the public, the nickel/plastic coins which are covered by plastic pouches shall be again shown to the public and it shall be put into the drum. After putting the nickel/plastic coins covered in a plastic pouch, the public shall be called to pick up the coins in each drum. First, the notation of series shall be picked up and it shall be displayed on the board, and this drum shall be removed from the row. The second drum which is the digit of lakh shall contain the coins as per the structure of the draw. In the drums 3 to 7 there shall be coins from 0 to 9 as per the structure of the draw. The public assembled in the place of draw shall be called to pick up one coin in each drum and announce that number. The officer in-charge shall announce the number and numbers shall be displayed on the board. After the 6 digits are picked up in the same manner, the winning ticket number will be announced on the board and it is declared as the winning ticket number as per the structure. Further winning ticket numbers shall be drawn according to the structure of the scheme as approved by the Government.

(5)     In case Bumper, First or Second prize number is found in the list of unsold tickets, the draw shall be repeated in accordance with Rule 12 under the supervision of the Committee till any of the sold ticket number gets the prize,

(6)     The Committee shall make a note of the prize winning numbers. The list of all the prize winning numbers should be cross checked with the prize winning numbers entered in the register.

(7)     The result of the draw shall be announced under the signature of the Director and released to the press by the Agent.

(8)     After the digits of the prize winning numbers are drawn and displayed on the number board, the prize winning numbers shall be entered in a register, and those entries in the register shall be signed by the members of the Committee or their nominees, who are present at the time of such draws.

(9)     After the draw is over, all records including the register referred to in sub-rule (8) shall be kept in the custody of the Director for a minimum period of three years after which they shall be destroyed. As regards to the tickets, the maximum period shall be 5 years from the date of draw:

Provided that such records and tickets shall be kept beyond the aforesaid period only when they are required for statutory audit or for production in the Court of law.

(10)   Wide publicity shall be given to the result of the draw. Such list shall also be published in the Official Gazette and in such other manner which shall constitute the official announcement of the results.

Rule - 16. Payment of prize amount.

(1)     The Director is authorised to make payment against the prize winning tickets. Further, the Director is authorised to make arrangements for payment of lower denomination prizes of Rupees Five Thousand and below, with the agent.

(2)     A person who possesses any genuine prize winning ticket to claim prize amount shall apply along with genuine prize winning ticket in Form I along with two passport size photographs duly attested by a Gazetted Officer, a domicile certificate and any other details required by the Director for payment of prize amount:

Provided that where the prize amount does not exceed Rupees Five Thousand, it may be disbursed without obtaining a claim in the said form but on presentation of the winning ticket with date and signature, on the revenue stamp of appropriate value and the name and address of the prize winner shall also be obtained on the reverse of such prize winning ticket.

(3)     No person shall be eligible for the prize amount unless the prize winning ticket is surrendered to claim such amount.

(4)     No joint claim on any prize winning ticket shall be recognised from any group of individual formed for the purpose of sharing prizes among themselves.

(5)     The prize amount payable on a prize winning ticket, the value of which is rupees five thousand and above, shall be claimed in person after the expiry of three days from the date of draw:

Provided that if the Director is satisfied that a prize winner cannot appear in person for any bona fide reasons, he may entertain the claim of the prize winner sent through a Nationalised/Scheduled/Co-operative Bank or through a person duly authoirsed.

(6)     Any claim made through any other mode will not be entertained.

(7)     Where the prize amount is rupees One Lakh and above, twenty-five per cent of the prize amount shall be paid in the form of National Savings Certificates or any other National Savings Securities with a maturity period of 6 years or more and balance prize amount shall be paid by cheque subject to deduction of Income-tax payable on the prize amount.

(8)     Prize amount for any prize winning ticket against which a case is filed in any Court of law should not be paid unless such case is settled.

Rule - 17. Verification of ticket.

(1)     The Director shall receive the claim for prize winning ticket after verifying with the results announced. The tickets produced shall be admitted for payment only after receipt of genuinely report from the Government Forensic Laboratory.

(2)     If the genuineness of the ticket referred to the Laboratory is not established and the report indicates any tampering, superimposing, altering of number or erasing etc., the claim shall be rejected and legal action shall be initiated against the claimant.

(3)     The claims for prizes based on mutilated, torn or disfigured tickets shall be rejected if it is not possible to verify the genuineness of the ticket. The prize amount of such tickets shall be disbursed, only if the ticket is found genuine on verification.

(4)     Where any investigation by the Income-tax Department is pending, the claim on the ticket may be considered subject to the result of such investigation and the amount shall be payable after deducting the Income-tax dues, if any.

(5)     In such cases, the decision of the Director shall be final.

Rule - 18. Claiming of prize amount.

(1)     The prize amount shall be claimed within ninety days from the date of draw. If there is a failure to claim the prize amount in respect of any draw within the specified period of ninety days from the date of such draw, the prize amount shall lapse and stand forfeited to the Government. If ninetieth day is a holiday, the claim can be accepted during office hours of the next working day.

(2)     Notwithstanding anything contained in sub-rule (1), the Director may entertain claims for the prize amount made beyond the period specified in sub-rule (1) but within the next thirty days where he is satisfied that such delay is for reasons beyond the control of the claimant.

(3)     The prize amount unclaimed within the stipulated time limit or not otherwise distributed shall become the property of the Government.

Rule - 19. Proceeds of sale of tickets.

The proceeds from the sale of tickets shall be credited by the agent with the approval of the Director to the consolidated fund of the State under the appropriate budget head as per agreement.

Rule - 20. Conduct of lottery within the State by other Countries, States and Union Territories.

(1)     Nothing contained in these rules shall affect the conducting, organising or promoting lottery within the State by any country having bilateral agreement or treaty with the Government of India, which shall be governed only by the terms of such agreement or treaty.

(2)     Every other State or Union Territories or any country having bilateral agreement or treaty with Government of India conducting/organising or promoting lottery as per Section 4 of the Act, shall submit to the Director following documents and details in Form II, namely.--

(1)     The details as per Section 4 of the Act;

(2)     Copy of the rules if any, made under Section 12 of the Act;

(3)     Details of the structure of every lottery scheme and any further addition or deletion to the scheme made from time to time;

(4)     Details of the distributors or selling agents appointed for selling its lottery tickets in the State and the cancellation and fresh appointment thereof;

(5)     Details of procedure specified by the concerned State Government/ Country for conducting the lottery draws and disbursing the prize amount;

(6)     Details of the designated authority or body entrusted to conduct the lottery draw by the concerned State Government/Country;

(7)     Details of the procedure for publishing the lottery results.

Rule - 21. Interpretation of Rules.

If any question arises as to the interpretation of these rules or any other matter not expressly provided for in these rules; the matter shall be referred to the Government in Finance Department and the decision of the Government on such question shall be final.

Rule - 22. Repeal and Savings.

The Karnataka State Lottery Rules, 1983, are hereby repealed:

Provided that such repeal shall not affect.--

(a)      The previous operation of the said rules or anything duly done or suffered there under; or

(b)      Any right, privilege, obligation or liability acquired, accrued or incurred under the said rules.