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.
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 an amount more than its annual revenue.
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 ,said the CAG report.
Neglecting the guidelines of the Central Vigilance Commission, the state government distributed the lottery tenders to 4 companies.
The rights to the lottery draw were given to E-Cool Gaming Solutions Pvt. Ltd that 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.
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.