'Would Cause Irreparable Harm Also To Race Horses': Karnataka HC Permits Bangalore Turf Club To Conduct Horse Racing

The Karnataka High Court has granted interim relief by permitting the Bangalore Turf Club to carry on all on-course and off-course horse racing and betting activities.

In that context, the Bench of Justice Krishna Kumar observed that, "by virtue of the impugned orders, the entire racing and betting activities of the petitioners, which was hitherto being carried on continuously and uninterruptedly for decades, has now come to a complete standstill and a grinding halt thereby resulting in irreparable injury and hardship not only to the petitioners but also to the race horses themselves who are lying idle without their regular racing activity, which would cause ailments, diseases etc., to the race horses which is sufficient to indicate that the balance of convenience is in favour of the petitioners."

The Bangalore Turf Club (BTC) and others challenged an order from the Additional Chief Secretary, Home Department, dated 06.06.2024, which rejected their applications to conduct racing activities.

The petitioners argued that the order was illegal, arbitrary, discriminatory, irrational, unreasonable, and violated principles of natural justice and proportionality. They stated that BTC had canceled the permits/licenses of the accused bookmakers and promised not to issue new permits/licenses if allowed to continue racing and betting activities. BTC agreed to comply with any terms set by the State Government for permission to conduct these activities. The petitioners emphasized that their livelihood depended on BTC's racing and betting activities, and the rejection of the license had caused significant financial loss to both the petitioners and BTC employees.

The State Government opposed the plea, arguing that BTC was responsible for illegal betting on its premises, justifying the rejection of the license application under the Licensing Act and Rules. They contended that the grant of a racing and betting license was discretionary and that BTC did not have a right to demand it. The government cited various illegal activities, including benami transactions, non-deposit of collected cash, non-deposit of GST from punters, failure to raise invoices as required by the Betting Tax Act, non-payment of TDS, and allowing unlicensed bookmakers and punters, as well as individuals with pending criminal proceedings, as reasons for refusing the license.

The High Court finally observed that, "all these issues/questions would necessarily have to be decided at the time of final hearing of the petitions; suffice it to state at this stage that on a overall consideration of the rival contentions, petitioners have clearly made out a prima facie case, balance of convenience is in favour of the petitioners who would be put to irreparable injury and hardship, if appropriate interim orders are not passed in their favour."

Cause Title: Bangalore Turf Club Limited vs State of Karnataka & Ors.

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