The Tamil Nadu Prize Schemes (Prohibition) Act, 1979

TAMIL NADU PRIZE SCHEMES (PROHIBITION) ACT, 1979 
TAMIL NADU ACT NO. 56 OF 1979. 
 
Arrangement of sections 
1. Short title, extent and commencement. 
2. Definitions. 
3. Prohibition of prize schemes 
4. Penalty for contravening the provisions of Section 3. 
5. Penalty for other offences in connection with prize schemes. 
6. Punishment of abettors 
7. Offences by companies 
8. Power to enter, search and seize. 
9. Forfeiture of newspapers and publication containing prize schemes. 
10. Power to try offences. 
11. Offences under this Act to be cognizable. 
12. Power to exempt. 
13. Power to make rules. 
14. Saving. 
15. Repeal and saving. 
 
 
 
TAMIL NADU PRIZE SCHEMES (PROHIBITION) ACT, 1979 
TAMIL NADU ACT NO. 56 OF 1979. 
[3rd December 1979] 
An Act to prohibit the promotion or conduct of prize schemes in the State of Tamil Nadu. 
Be it enacted by the Legislature of the State of Tamil Nadu in the Thirtieth Year of the Republic 
of India as follows. 
1. Short title, extent and commencement.—  (1) This Act may be called the Tamil Nadu Prize 
Schemes (Prohibition) Act, 1979. 
(2) It extends to the whole of the State of Tamil Nadu. 
(3) It shall be deemed to have come into force on the 13th October 1979. 
2. Definitions.—  In this Act, unless the context otherwise requires, — 
   (a) "Government" means the State Government; 
   (b) "prize scheme" means any scheme by whatever name called whereby any prize or gift 
(whether by way of MONEY or by way of movable or immovable property) is offered, or is 
proposed to be given or delivered to one or more person to be determined by lot, draw or in any 
other manner from among persons who purchase or have purchased goods or other articles 
from shops, centers or any other place whatsoever specified by the sponsors of the scheme or 
on any event or contingency relative or applicable to the drawing of any ticket, lot, number or 
figure in relation to such purchasers. 
 Explanation— For the purposes of this clause, — 
 (i) "purchase" may be by way of payment in one lumpsum or in instalments; 
 (ii) "money" includes a cheque, postal order, demand draft, telegraphic transfer or 
money order. 
3. Prohibition of prize schemes.— No person shall promote or conduct any prize scheme. 
4. Penalty for contravening the provisions of Section 3.—Whoever contravenes the 
provisions of section 3 shall be punished with rigorous imprisonment for a term which may 
extend to three years; 
 Provided that such rigorous imprisonment shall not be less than three months. 
5. Penalty for other offences in connection wit h prize schemes.— Whoever, with a view to 
the promotion or conduct of any prize scheme in contravention of the provisions of this Act or in 
connection with any such prize scheme promoted or conducted —(a) prints or publishes any 
ticket, coupon or other doc ument for use in the prize scheme: or  
   (b) distributes or offers or advertises for distribution, or has in his possession for the purpose 
of distribution of any ticket, coupon or other document for use in the prize scheme: or  
   (c) prints, publishes or distributes, or has in his possession for the purpose of publication or 
distribution.— 
 (i) any advertisement of the prize scheme; or  
 (ii) any list, whether complete or not, of purchasers in the prize scheme; or  
 (iii) any such matter descriptive of, or o therwise relating to, the prize scheme as is 
calculated to act as an inducement to persons to participate in the prize scheme or any other 
prize Schemes; or 
  (d) brings, or invites any person to send, for the purpose of distribution, any ticket, coupon or 
other document for use in, or any advertisement of, the prize scheme; or 
  (e) uses any premises, or causes or knowingly permits any premises to be used, for purposes 
connected with the promotion or conduct of the prize scheme; or 
  (f) causes or procures or attempts to procure any person do any 
of the above mentioned acts; 
shall be punished with rigorous imprisonment for a term which may extend to three years. 
 Provided that such rigorous imprisonment shall not be less than three months: 
6. Punishment of abettors.— Whoever in any manner whatsoever causes, procures, counsels, 
aids, abets or is accessory to the commission of any offence punishable under section 4 or 
section 5shall be punished with the punishment provided for the offence. 
7. Offences by co mpanies.—  (1)  Where an offence against any of the provisions of this Act 
or any rule made thereunder has been committed by a company, every person who. at the time 
of offence was committed, was in -charge of, and was responsible to, the company for the 
conduct of the business of the company as well as the company, shall be deemed to be guilty of 
the offence and shall be liable to be proceeded against and punished accordingly:  
 Provided that nothing contained in this sub-section shall render any such person liable to 
any punishment, if he proves that the offence was committed without his knowledge or that he 
exercised all the diligence to prevent the commission of such offence.  
 (2) Notwithstanding anything contained in sub -section (I), where any such offenc e has 
been committed by a company and it is proved that the offence has been committed with the 
consent or connivance of, or is attributable to any neglect on the part of, any director, manager, 
secretary or other officer of the company such director, mana ger, secretary or other officer shall 
also be deemed to be guilty of that offence and shall be liable to be proceeded against and 
punished accordingly.  
 Explanation— For the purpose of this section — 
            (a) "company" means any body corporate and includes a firm, society or other 
association of individuals; and 
 (b) "director" in relation to —  
  (i) a firm, means a partner in the firm, 
  (ii) a society or other association of individuals, means the person who is 
entrusted, under the rules of the society or other association, with the management of the affairs 
of the society or other association, as the case may be. 
8. Power to enter, search and seize .— (1) It shall be lawful for any Police Officer not below 
the rank of an officer-in-charge of a police station — (a) to enter if necessary by force, whether 
by day or night with such assistants as he considers necessary, any premises, which he has 
reason to suspect, are being used for purposes connected with the promotion or co nduct of any 
prize scheme in contravention of the provisions of this Act;  
 (b) to search the premises and persons whom he may find therein:  
 (c) to take into custody and produce before a Judicial Magistrate all such persons as are 
concerned or against whom a reasonable complaint has been made or credible information has 
been received or a reasonable suspicion exists of their having been concerned with, or with the 
promotion or conduct of, any prize scheme; and  
 (d) to seize all things found therein which ar e intended to be used or reasonably 
suspected to have been used in connection with such prize scheme.  
   (2) All searches under this section shall be made in accordance with the provisions of the 
Code of Criminal Procedure, 1973 (Central Act 2 of 1974). 
9. Forfeiture of newspapers and publication containing prize schemes. — Where any 
newspaper or other publication contains any prize scheme promoted or conducted in 
contravention of the provisions of this Act, or any advertisement in relation thereto, the 
Government may, by notification, declare even copy of the news paper and every copy of the 
publication containing the prize scheme of the advertisement to be forfeited to the Government. 
10. Power to try offences..— No court inferior to that of a Metropolitan Magistrate or a Judicial 
Magistrate of the First Class shall try any offence punishable under this Act. 
11. Offences under this Act to be cognizable.— Any offence punishable under this Act shall 
be a cognizable offence within the meaning of the Code of Criminal Procedure, 1973 (Central 
Act 2 of 1974) 
12. Power to exempt.— Notwithstanding anything contained in this Act. if the Government are 
satisfied that it is necessary or expedient in the public interest so to do, they may, by notification 
exempt subject to such conditions as they deem fit any prize scheme or class of prize schemes 
from the provisions of this Act. 
13. Power to make rules .— (1) The Government may make rules for earning out all or any of 
the purposes of this Act.  
     (2) (a) All rules made under this Act shall be published in the Tamil Nadu Government 
Gazette, and unless they are expressed to come into force on a particular day, shall come into 
force on the day on which they are so published.  
 (b) All notifications issued under this Act shal l, unless they are expressed to come into 
force on a particular day, come into force on the day on which they are published.  
     (3) Every rule made or notification issued under this Act shall, as soon as possible after it is 
made or issued, be placed on the table of both Houses of the Legislature, and if, before the 
expiry of the session in which it is so placed or the next session, both Houses agree in making 
any modification in any such rule or notification or both Houses agree that the rule or notification 
should not be made or issued, the rule or notification shall thereafter have effect only in such 
modified form or be of no effect, as the case may be, so, however, that any such modification or 
annulment shall be without prejudice to the validity of a nything previously done under that rule 
or notification. 
14. Saving.— The provisions of this Act shall be in addition to, and not in derogation of, any 
other law for the time being in force, and nothing contained herein shall exempt any person from 
any pro ceeding by way of investigation or otherwise which might, apart from this Act be 
instituted against him. 
15. Repeal and saving.— (1) The Tamil Nadu Prize Schemes (Prohibition) Ordinance, 1979 
(Tamil Nadu Ordinance 18 of 1979) is hereby repealed. 
(2) Notwithstanding such repeal anything done or any action taken under the said Ordinance 
including any notifications issued, rules made shall, in so far as they are not inconsistent with 
this Act, be deemed to have been done or taken under this Act and shall conti nue in force 
accordingly, unless and until superseded by anything done or any action taken under this Act. 
 
 

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