On June 22, a division bench of the High Court of Karnataka banned horse racing and betting activities at Bangalore Turf Club until a single judge bench makes a final decision on the petition filed by the BTC and others.
Chief Justice N.V. Anjaria and Justice K.V. Aravind were the judges of this bench who passed this order on June 22 after setting aside a similar one issued by a single judge on June 18. As per section 13B of the Act, state government had preferred an appeal against the interim order passed by a single judge for staying its previous order dated June 6, declining permission for conducting horse race and betting.
BTC was ready to hold racing events on June 22nd and 23rd as per permission from the trial judge with races scheduled for Saturday at 1:30pm.
Interim order from Single judge
However, after noting that the Government has “prima facie acted in an irrational, illegal, arbitrary and unreasonable manner” by refusing to grant licence, he allowed these activities to continue under certain terms dictated by Government which were in place when licences were issued till March 2024 for all such activities subject to monitoring, supervision and regulation by government with a rider that this interlocutory order will be dependent upon outcome eventually reached in respect of application by BTC.
Government appeals
Before the Division Bench however, it argued that it would take into consideration granting permission only after August given further probe into offences like benami transactions, non-depositing cash collected through punters, non-depositing GST from bookmakers against whom some charge sheets were filed.
But BTC argued before the court that is not an accused party in criminal case and despite initiation of criminal proceedings against punters no details have been sought from BTC about any illegalities committed on its premises.
According To Bengaluru Turf Club (BTC), another reason behind denial of permission is so as to pressurize them to surrender their present prime land at city centre and shift to the outskirts as proposed by the government. Furthermore, he mentioned that it is yet to be decided by the apex court whose name of the land on which race course stands?
The BTC, Racehorse Owners Association and Trainers and Jockeys Association argued that bookmakers are now required to remit deducted GST directly to Government under law and that there is no obligation on BTC in this regard under GST law for paying. Earlier, Betting Tax Act repealed under GST Law, wherein BTC was responsible for remitting betting tax to authorities.
