Karnataka High Court stays decision to temporarily allow horse racing, betting at Bangalore Turf club

The Karnataka High Court on Saturday stayed a June 18 single-judge order that had temporarily permitted the Bangalore Turf Club (BTC) to conduct on-course and off-course horse racing and betting [State of Karnataka and ors. v. Bangalore Turf Club and ors].A Division Bench of Chief Justice NV Anjaria and Justice KV Aravind pronounced the order today on a writ appeal filed by the State government against the single-judge order. The Court concluded that the State had presented a strong prima facie case and that it appeared to have refused to grant a license to conduct horse racing and betting for germane reasons."The order of single-judge is hereby suspended and stayed. The respondent-original petitioner club is prohibited from conducting on-course and off-course horse racing and betting even during the pendency of the petition (challenging refusal to grant licence), subject to the outcome of the petition," the Court said..The dispute before the High Court concerns the State Home Department's order refusing a racing license and the Finance Department's order refusing a betting license to BTC. Both orders were passed on June 6.This refusal was challenged by way of a batch of writ petitions not only by the BTC but also by the Karnataka Race Horse Owner’s Association, the Karnataka Trainers Association, punters (those who engage in betting) and the Jockeys’ Association of India.The petitioners highlighted that racing and betting activities had been carried out for over a century without hindrance. It was argued that more than 20,000 people directly and indirectly depend on horse racing and that it produces more than ₹1 crore tax daily.On the other hand, the State argued that BTC was wholly responsible for the illegal betting being carried out, which led to the refusal to grant a license. BTC does not have a vested right to be granted a license, the State said. The State further contended it had faced a loss of ₹296 crore on account of tax evasion..In a June 18 interim order, the single-judge Bench of Justice SR Krishna Kumar observed that the State government's orders refusing racing and betting licenses to the BTC were violative of the principles of natural justice.Justice Kumar found that BTC was not granted a reasonable opportunity to make their case for a grant of licence and that the show cause notice issued to them lacked material particulars.Therefore, the single-judge granted the petitioners interim relief and said that the BTC could resume on-course and off-course horse racing and betting activities during the pendency of their petition.The State government challenged this interim order before a Division Bench, which has now suspended the order..The Division Bench noted that the Betting Ring Manager, a BTC employee, is among those accused in a criminal case registered earlier this year on allegations of unauthorised betting activities at the BTC. Similarly, the Chairman of the club has also been arraigned as an accused. When top office bearers of the BTC themselves are facing criminal prosecution, it was hardly safe to leave the supervision of the betting in their hands, the Court opined."If it is the apprehension that the event is prone in promoting and peddling illegalities relating to cash receipts, benami transactions, bookie betting inside and outside the premises, the competent authority is entirely justified in rejecting the licence to hold the event," the Bench further observed. The Court also pointed out that no one has a right to get a licence for horse racing, and that the authorities have discretionary powers to grant or refuse licences. The Court concluded that, prima facie, the State had rejected the licence grant this year for relevant considerations. Therefore, it suspended the June 18 interim order in favour of the BTC. The Division Bench added that the question of whether petitioners apart from the BTC have locus standi (legal standing) to pursue their writ petitions is kept open.The matter has been listed next on August 13. .Advocate General K Shashikiran Shetty, assisted by learned Additional Advocate General Prathima Honapura, Government Advocate SS Mahendra and High Court Government Pleader Anukanksha Kalkeri represented the State.Senior Advocates SS Naganand and Sriranga, assisted by advocates Sumana Naganand and Arihant R Sungal represented the Bangalore Turf Club.Advocate Vijetha R Naik assisted by advocate Monesh Kumar represented the Karnataka Trainers Association. Senior Advocate KN Phanindra, assisted by advocates Krutika Raghavan, Sameeksh Patil and Abijit J appeared for the Karnataka Racehorse Owners Assocation.Senior Advocate DR Ravishankar assisted by advocate Siri R represented various punters and the Jockeys Association of India. .[Read Order]