Key Points
The Comptroller and Audit General of India (CAG) in 2017 had flagged serious irregularities by marketing agents, including Future Gaming and Hotel Services owned by lottery king Santiago Martin, in its 40-page report submitted before Parliament...
The decision to hold a CAG audit was taken by the Union home ministry in 2015 following rampant complaints of corruption and violations in online and offline lottery by major players, including Martin..
"The marketing agents (MA) have cornered 98.60% of sale proceeds of lotteries while the state could receive a meagre 1.40% of sale proceeds, during the audit period 2010-2016," the C&AG report stated...
In its report titled 'Performance Audit on Sikkim State Lotteries', the C&AG noted, "The award of marketing contract of the state's lotteries to various lottery MAs was characterised by lack of transparency, frequent extensions of contract without competitive bidding and considerable delay in finalisation of tenders that led to huge loss of revenue to the state..
The report further noted that the home ministry in August 2011 gave directions to all the principal secretaries of state governments in whose territory lottery tickets were sold "to duly be informed of marketing arrangements established by the organising state and give them all details of persons, firms involved in selling, distribution, printing of lotteries."..
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