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Is monthly lucky draw scheme legal or not?
14-Aug-2023 (In Consumer Court Law)
I wants to start a lucky scheme with 200 members, where every member will pay 1000 rupees for 18 months & every month 1 or more member will get prize. At last month of scheme rest all members who did't get prize will be awarded with a asure gift of rupees 18000. May i need any permision for this.
On the basis of the details of the scheme which your relative is going to organise; it is very much clear that he is not organising any "lucky Draw" but it is a "Chit Fund Committee" in a manner in which members will be awarded on monthly basis and 4 members who will be left without any prize will be simply given back their cash back. Law Prohibiting lottery has an element wherein a person loses his all investment in case he does not gets lucky draw in his/her won favour but where a person who does not gets any prize till the last month will be given cash back collected over previous many months, then such a scheme cannot be termed as "Lottery" but it is a "Chit Fund Committee" system. Hence it is totally legal. Laws governing Chit Fund Committee are separate from laws prohibiting lottery.
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Adv. Siddhant Sharma
Delhi | 500+ Answers
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