Alleged Illegal betting activities, failure to deposit collected GST & TDS: Karnataka HC Upholds FIR

Surya And Co Vs. State of Karnataka (Karnataka High Court)

The case of Surya And Co vs. State of Karnataka, as adjudicated by the Karnataka High Court, involves allegations against the accused related to illegal betting activities, specifically regarding the failure to deposit collected GST and TDS amounts and maintain proper documentation. The court’s decision is informed by various legal precedents, including Supreme Court judgments, which outline the principles guiding the investigation and adjudication of such cases.

The court begins by delineating the accusations against the accused, highlighting their involvement in illegal betting practices. Licensed bookies are accused of collecting GST and TDS amounts from punters and winning bettors but failing to deposit these amounts with the appropriate authorities. Additionally, both licensed and unauthorized bookies are alleged to have lacked proper documentation, failing to issue receipts and maintain registers of collections.

Drawing from legal precedent, particularly the case of State of West Bengal vs. Narayan K. Patodia, the court underscores the statutory authority of the police to investigate offences under the Indian Penal Code, regardless of whether other laws also apply. This principle is pivotal in affirming the validity of the FIR registered against the accused, notwithstanding their arguments to the contrary.

The court further references the case of Neeharika Infrastructure Private Limited, which elucidates several key principles. Notably, it emphasizes the statutory duty of the police to investigate cognizable offences and cautions against thwarting such investigations. The court underscores the limited circumstances under which FIRs may be quashed, stressing the need for exceptional circumstances to justify such action.

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