Supreme Court of India adjourns Maharashtra casino law case

Written by Anchal Verma

The Supreme Court of India has adjourned for two weeks a case seeking to revive the Maharashtra Casinos (Control and Tax) Act, 1976. The petition filed by Dyutbhumi Hotels and Resorts Pvt Ltd, was listed for hearing on 21 April.

Casino operator challenges repeal

The petition has been filed by Dyutbhumi Hotels and Resorts Pvt Ltd, formerly known as Mumbai Gambling Management Pvt Ltd. The company aims to operate casinos in Maharashtra and argues that the repeal of the 1976 Act is unconstitutional.

The original law proposed a structured licensing system for casinos in the state. It stated that casino games could only be offered within licensed venues, which would be subject to a gambling tax of up to 25 percent. Despite being passed in 1976, the act was never notified or implemented. In 2023, the Maharashtra government officially repealed it.

Bombay High Court dismisses revival attempt

In February, the Bombay High Court rejected the petitioner’s claims. The court ruled that the 1976 law had never come into force and was, in its words, “deeply buried.” A bench of Justices Girish Kulkarni and Advait Sethna stated that reviving the regulation was “an impossibility and a far-fetched expectation, which the law can never recognise.”

“When the Act itself was a dead letter, no legal rights whatsoever could accrue to the petitioner so as to maintain this petition,” the court stated.

The court also addressed the petitioner’s argument that the repeal was “ultra vires” or beyond the powers of the government. According to Indian law, legislation can only be termed ultra vires if it violates constitutional provisions, such as fundamental rights. The High Court concluded that none of these conditions applied to the Maharashtra Casinos Act.

Supreme Court case adjourned

Following the rejection at the High Court level, the case was moved to the Supreme Court. On 21 April, a Supreme Court document confirmed that the matter had been adjourned for two weeks. The petitioner had requested an exemption from submitting a certified copy of the earlier judgment, though the document is publicly available online.

The petitioner also requested that the Maharashtra government reconsider its application to operate casinos in the state.

Currently, betting remains illegal in Maharashtra under the Bombay Prevention of Gambling Act, 1887. The law prohibits all forms of gambling except for horse racing and games of skill, which are treated separately under Indian law.

India only permits casino operations in Goa, Daman and Sikkim. These regions have their own regulatory frameworks for licensed gambling and casino activities.

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