Section 7 of LRA : Section 7: Penalty

Explanation using Example

Imagine a scenario where the Tourism Department of a state government decides to raise funds by organizing a lottery. Despite the Lotteries (Regulation) Act, 1998, they proceed without adhering to the legal requirements set by the Act. The lottery is widely advertised and tickets are sold to the public. After an investigation, it is discovered that the lottery was not conducted in accordance with the Act.

As a result, the Head of the Tourism Department could be charged under Section 7(1) of the Act. If found guilty, the Head could face up to two years of rigorous imprisonment, a fine, or both. However, if the Head can demonstrate that they had no knowledge of the contravention or that they took all necessary steps to prevent it, they might not be punished.

Further, if it is revealed that an officer within the department, other than the Head, had a role in the contravention, either through consent, connivance, or neglect, as per Section 7(2), that officer could also be held liable and face similar punishments.

Additionally, any individual who acted as an agent, promoter, or trader for this illegal lottery, or who sold, distributed, or purchased tickets, could be punished under Section 7(3) with rigorous imprisonment for up to two years, a fine, or both.