Karnataka High Court restrains police from taking coercive actions against Dream11 founders

  • Lawbeat News Network
  • 04:05 PM, 29 Oct 2021

Read Time: 06 minutes

The Karnataka High Court has directed the state police to not take any coercive action against Bhavit Sheth and Harsh Jain, the Founders and Directors of Sports Technologies Private Limited, which promotes the 'Dream 11' gaming app. 

Both of them had moved the High Court seeking to quash a First Information Report (FIR) registered against them by the police under the Karnataka Police (Amendment) Act which bans online gaming and gambling in the state.

During the hearing, Justice Sreenivas Harish Kumar said, "Don't precipitate. Don't arrest him," and ordered, "Counsel for petitioner is present, AGA seeks time for taking instruction on the petition. Petitioner's counsel submits he is likely to be arrested. Respondent state is hereby directed not to take coercive steps till the next date of hearing. List the matter on November 9." 

The Annapoorneshwari Nagar Police Station in Bangalore had registered an FIR under Sections 79 and 80 of the Amendment Act based on a complaint by one Manjunath, a resident of Nagarbhavi in Bengaluru filed on October 7.

Manjunath had moved the complaint after he did a basic search in Google Play store to find out how many online games are withdrawn. 

He had noted that many companies have blocked their mobile applications except 'Dream 11'. 

Despite the new amendment, many have continued betting on online games in 'Dream 11'. 

Many people are still putting and risking their money by creating their own fantasy cricket team and losing huge amounts of money giving a chance to the accused to earn unlawfully, the complaint added.

Seeking to quash the complaint and the FIR registered, the petition filed states that the case registered by the respondent police suffers from want of sanction of law and as such deserves to be quashed in limine. 

The plea also states that the activity of fantasy sports has been held as a game of skill and certainly not one in the nature of gambling, betting or wagering by various high courts. 

Senior Advocate C V Nagesh appearing for the petitioners argued that the complaint makes out no offence against the accused. Rather the complainant has been chosen to make mere bald, omnibus and vague allegations against the petitioners who are founder and directors of the company which has developed the Dream 11 platform.

The matter will be next heard on November 9.

The Court is also currently hearing another batch of petitions moved by the All India Gaming Federation and several gaming firms against the new amendment which bans online gaming and betting. 

The Amendment Act, 2021 has banned all online gambling and betting, and in case of any violations, there would be a maximum imprisonment of three years and penalty upto Rs 1 lakh for violation of the provisions.

Cause Title: Bhavith Sheth vs. State of Karnataka