Companies under the ownership of Rajya Sabha MP Subhash Chandra’s Essel Group are under scanner over the Rs 11,808 crore lottery scam in Mizoram in the North-East. As per reports, 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 crore for the government, an amount more than its annual revenue.
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.
According to CAG report, the lottery distributor companies found tricks to save the income tax. They saved income-tax by giving people 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.
Neglecting 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. Notably, the E-Cool Gaming Solutions belongs to 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 lease the rights to draw the lottery to Pan India Network Ltd, another company associated with Subhash Chandra. The CAG report further added that the four mentioned companies only submitted 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.
It is to be noted that 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 a tagline ‘Play India Play’.