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"4(1) The State Government may specify qualification, experience and other terms and conditions for appointment of distributors or Marketing agents.
(2) The State Government may appoint Marketing Agent(s)/Distributor(s) by way of inviting tender. The tender shall be in two parts i.e. (a) Technical bid and (b) Financial bid. These parts shall be furnished separately by the tenderer. The technical bid of the tenderers shall be opened first followed by the financial bid provided the tenderer is considered eligible in the technical bid. Financial bids of the unqualified parties in the technical bid shall not be opened and both the bids shall be returned to them in person.
(ii) The tenderer should be bonafide Marketing Agent(s)/Distributor(s)/ Bulk Agents of sound financial standing having sufficient experience of at least 5 (five) years in the lottery business. A documentary proof in this regard is to be submitted.
(iii) The tenderer shall have carried out similar jobs of paper Lotteries (i.e. sale of weekly and bumper lotteries) continuously for 2 (two) or more years in the last 5 (five) years and should have distributorship of at least one State currently.

only this, the offences under the Act of 1998 have been declared as cognizable and non- bailable. Contents of the above clauses of Sections 4 and 7 would make it clear that if the State Government takes a decision to sell the tickets through distributors or selling agents, it can do so, but, a heavy burden lies upon the Government to arrange the distributorship in such a manner in which there is no possibility of any contravention of the Act so as to make the distributors/selling agents or even officials of the Government liable for punishment under the said Act.

(c), which means an individual or a firm or a body corporate or other legal entity under law so appointed by the Organising State through an agreement to market and sell lotteries on behalf of the Organising State. Rule 4 further provided that the Organizing State may specify qualifications, experience and other terms and conditions for the appointment of distributors or selling agents and the distributors or the selling agents shall furnish a security deposit or a bank guarantee, as may be specified by the Organising State. These Rules also imposed a condition that the distributors or selling Mrs. J. Geetha vs. State of Sikkim & Ors.