India’s Comptroller warns of lottery ticket scam

According to a revenue report by the Comptroller and Auditor General (CAG) of India, Kerala is overrun with fake lottery tickets. The report indicated that, between 2011 and 2017, the district lottery offices in the state collected a total of 348,699 tickets, indicating a lax attitude on the part of Kerala government officials to properly monitor the industry. It further stated that the government hasn’t taken enough measures to prevent the scams.

Kerala officials responding by saying that they were investigating cases regarding the production of fake lottery tickets, adding that “inquiry in the cases is progressing and penal provisions could be initiated only on completion of the inquiry.” The CAG countered by saying that the investigation wasn’t enough, and that the state needed to be more proactive in the supervision of lotteries, in accordance with Lottery (Regulation) Rules established in 2010.

Lotteries have been a touchy subject in India for some time and Kerala isn’t the first state to come under fire for its practices. In June of last year the CAG revealed discrepancies in the Mizoram government’s handling of state lotteries. It said that the government never collected all of the proceeds allowing, instead, the distributors to deposit a “minimum guaranteed revenue.” The CAG also accused Mizoram of accepting all lottery schemes as presented by the distributors without making any changes.

In April of this year, the Kerala High Court shot down a proposal submitted by tax agents that would have required lottery agents and distributors to provide the agency with the personal details of lottery winners. The court ruled that the government doesn’t maintain the authority to enforce the rule.