Ratan Khatri
Encyclopedia
Ratan Khatri is considered by many to be the pioneer of the gambling/betting movement in India. Khatri, who hails from a Sindhi
family, started from humble beginnings and like most Hindu Sindhis living in India, he came to Mumbai from Karachi, Pakistan when he was a teenager during the 1947 partition. He is credited as the person who transformed Matka
(a form of gambling in India
that originated in Mumbai in 1962) into India's biggest betting racket and established a nation-wide gambling network that lasted for decades under his control until he retired and decided to relinquish his position.
Another key personality in the business during the time matka originated was "Kalyanji Bhagat." Bhagat is known to have actually initiated the earliest forms of this gambling which was further popularized by Khatri.
The Matka craze in Bombay in the 1970s and 1980s and also continued into the 90s until the police cracked down on it. Khatri is known as the kingpin of the Matka racket - and the public and media referred to him as the Matka King. The character of Premnath who enacted the title role in Bollywood filmmaker Feroz Khan
's film Dharmatma
(the first Indian adaptation of the film The Godfather
) was inspired from and loosely based on Ratan Khatri. Just as in the film, Ratan Khatri was known to come to the aid of all people. His beneficiaries included friends from the film industry and corporate world and distant relatives who needed any support or financial assistance. Although Khatri has long retired and does not operate the matka business any more, a number of bookies continue to falsely operate under his name of Ratan Matka. This is probably because Khatri was known to be the most high-profile, honest and reputable player in this business that had astounding odds. Khatri made it customary to ask any member of the public to pull out the three cards on the dot of the appointed hours. Each pack was used only once and discarded. The three pulled out cards would remain with him after he scratched the printed side with his finger nails as proof. (Citation- Mid-Day February 18, 2008 article referenced below - "Khatri’s betting was considered more genuine as the cards were reportedly opened in the presence of patrons." )
Due to his ties with prominent businesspersons as well as illustrious personalities from Bombay's film industry, many of whom were ardent Matka players, Khatri is also said to have also ventured into Bollywood
financing for some time. One of the films produced by Khatri is Rangila Ratan
which he co-produced with Ramchandra Bhikubhai. His association with films did not end there as his two sons continued to operate in the film business and also own a film theatre.^(From Matka King to anonymous punter..(article in The Indian Express Nov 2007)
Khatri was adored by the masses in Mumbai, who easily made profits by spending as little as five rupees on Matka gambling. In a time of political disarray during the emergency announced by Indira Gandhi
, Ratan Khatri was arrested for 19 months. Following his arrest, and as a result of extreme public resentment towards Indira Gandhi, there were chants by the disillusioned Indian masses that Ratan Khatri should become prime minister instead of Indira Gandhi - the slogan(a reference to Gandhi's Garibi Hatao campaign) went "Indira Gandhi ko hatao, Ratan Khatri ko prime minister banao".
Ratan Khatri has always been known to lead a simple and austere life and was always seen in his trademark kurta pyjama and a muffler tied around his head even while conducting his business. He has now given up Matka since more than a decade but continues to live in Mumbai, India.
The game of matka is deceptively simple. Though cards are supposed to be drawn in a transparent manner in front of punters and patrons, it is not often the case. Operators are now using advanced manipulative and statistical methods in the matka business. The numbers which have minimum bets placed on them are drawn, resulting in gains of Rs 10 crore to Rs 12 crore for the bookies/operators on a daily basis. A bet of Rs 10 has the potential to result in Rs 1,500 for the better. Usually, a gambler tries multiple options/bets on a variety of numbers and combinations to make money.
To understand more about the workings of the game, lets say that, for example if the three opening cards drawn were the Ace of Spades, five of hearts and 9 of clubs. The opening number would be a sum of the three cards 1+5+9 = 15
The opening number would be 5 and the display on the walls of selected sites
would show a "matka" or pot with the following legendoooooijoo
159
5x
If 2, 3 and 4 was the next three cards drawn at 12 midnight,the final
display a few minutes after mid night would be
159
5x9
234
Betting will then take place on all the numbers, i.e. 159 or
234 or 59 or even 5 or 9 or all of them. For a 25 paise bet the returns are Rs 2.25.
The bookies all across Mumbai operate on kind of franchise. If the betting is heavy on a particular number and the punters won, bookies have been known to have disappeared overnight.
Insiders said there are around 400 matka bookies in the city and above 1,000 across the state. The ‘hafta’ to police and other agencies across the state is estimated at Rs 6 crore each month. The matka business had come to a virtual standstill around 2003. The new kingpin, Pappu Saula, operates from an office in Mulund.[Citation - Mid-Day
news article referenced below].
In June and July 2008 the Matka business once again came to a stand still with the murder of Suresh Bhagat, son of Kalyanji Bhagat. Suresh and Pappu Saula both are said to have had ties with Mumbai gangster Arun Gawli
who helped in orchestrating the murder alongside Suresh's wife. The media quoted the Mumbai police saying that the Matka business brought a 1000 crore monthly turnover to Savla and Bhagat.
In the early days it depended on opening and closing rates of cotton traded on New York wholesale cotton market. The punters would bet their money on these numbers and the winning number would receive a return of 9 times the sum betted. The cotton rates were quoted in three digits. Once it so happened that for days together the open and close figures turned out to be 0, thus making the gamblers and their bookies lose heavily.
Eventually this shook the faith of the people in NY cotton figures. And thus was born the idea of gambling on indigenous open and close rates of wholesale cotton traded on Bombay's cotton exchange at Siwri (cotton exchange on harbour line). For many years Siwri cotton figures were reliably used by the betting community. Probably because of government interference, the idea of punting on Bombay cotton figures was given up in favour of Khatri's quick, clever and convenient Matka system.
and Sikkim
. There was and has often been debate in Mumbai on the legalisation of Matka and gambling, just as horse-racing/betting has been legalised. Other than lotteries, legalised gambling in India is only limited to betting on horse-racing on the pretext of horse-racing being a "skill".
Sindhi people
Sindhis are a Sindhi speaking socio-ethnic group of people originating from Sindh, a province Formerly of British India, now in Pakistan. Today Sindhis that live in Pakistan belong to various religious denominations including Islam, Zoroastrianism, Hinduism, Sikhism and Christianity...
family, started from humble beginnings and like most Hindu Sindhis living in India, he came to Mumbai from Karachi, Pakistan when he was a teenager during the 1947 partition. He is credited as the person who transformed Matka
Matka gambling
Matka is a type of gambling that originated in Mumbai, India. The word Matka is often used as a synonym for "gambling" in India. Matka is known to be started and made a big money proposition in India by Ratan Khatri....
(a form of gambling in India
Gambling in India
Gambling in India is heavily restricted. The Public Gambling Act of 1867 prohibits running or being in charge of a public gaming house. The penalty for breaking this law is a fine of 200 or imprisonment of up to 3 months. Additionally, this Act prohibits visiting gambling houses...
that originated in Mumbai in 1962) into India's biggest betting racket and established a nation-wide gambling network that lasted for decades under his control until he retired and decided to relinquish his position.
Another key personality in the business during the time matka originated was "Kalyanji Bhagat." Bhagat is known to have actually initiated the earliest forms of this gambling which was further popularized by Khatri.
The Matka craze in Bombay in the 1970s and 1980s and also continued into the 90s until the police cracked down on it. Khatri is known as the kingpin of the Matka racket - and the public and media referred to him as the Matka King. The character of Premnath who enacted the title role in Bollywood filmmaker Feroz Khan
Feroz Khan
Feroz Khan was an Indian actor, film editor, producer and director in the Hindi film industry...
's film Dharmatma
Dharmatma
Dharmatama is a 1975 Hindi movie and the first ever Bollywood film to be shot in Afghanistan. It was produced and directed by Feroz Khan. The movie is the first attempt in India to localise The Godfather. This film's protagonist Premnath was based on the character of Matka king Ratan Khatri...
(the first Indian adaptation of the film The Godfather
The Godfather
The Godfather is a 1972 American epic crime film directed by Francis Ford Coppola, based on the 1969 novel by Mario Puzo. With a screenplay by Puzo, Coppola and an uncredited Robert Towne, the film stars Marlon Brando, Al Pacino, James Caan, Robert Duvall, Sterling Hayden, John Marley, Richard...
) was inspired from and loosely based on Ratan Khatri. Just as in the film, Ratan Khatri was known to come to the aid of all people. His beneficiaries included friends from the film industry and corporate world and distant relatives who needed any support or financial assistance. Although Khatri has long retired and does not operate the matka business any more, a number of bookies continue to falsely operate under his name of Ratan Matka. This is probably because Khatri was known to be the most high-profile, honest and reputable player in this business that had astounding odds. Khatri made it customary to ask any member of the public to pull out the three cards on the dot of the appointed hours. Each pack was used only once and discarded. The three pulled out cards would remain with him after he scratched the printed side with his finger nails as proof. (Citation- Mid-Day February 18, 2008 article referenced below - "Khatri’s betting was considered more genuine as the cards were reportedly opened in the presence of patrons." )
Due to his ties with prominent businesspersons as well as illustrious personalities from Bombay's film industry, many of whom were ardent Matka players, Khatri is also said to have also ventured into Bollywood
Bollywood
Bollywood is the informal term popularly used for the Hindi-language film industry based in Mumbai , Maharashtra, India. The term is often incorrectly used to refer to the whole of Indian cinema; it is only a part of the total Indian film industry, which includes other production centers producing...
financing for some time. One of the films produced by Khatri is Rangila Ratan
Rangila Ratan
Rangila Ratan is a 1976 Bollywood action film directed by S. Ramanathan.-Cast:*Rishi Kapoor*Parveen Babi*Ashok Kumar*Ajit*Jeevan*Durga Khote*Tun Tun*Sunder...
which he co-produced with Ramchandra Bhikubhai. His association with films did not end there as his two sons continued to operate in the film business and also own a film theatre.^(From Matka King to anonymous punter..(article in The Indian Express Nov 2007)
Khatri was adored by the masses in Mumbai, who easily made profits by spending as little as five rupees on Matka gambling. In a time of political disarray during the emergency announced by Indira Gandhi
Indira Gandhi
Indira Priyadarshini Gandhara was an Indian politician who served as the third Prime Minister of India for three consecutive terms and a fourth term . She was assassinated by Sikh extremists...
, Ratan Khatri was arrested for 19 months. Following his arrest, and as a result of extreme public resentment towards Indira Gandhi, there were chants by the disillusioned Indian masses that Ratan Khatri should become prime minister instead of Indira Gandhi - the slogan(a reference to Gandhi's Garibi Hatao campaign) went "Indira Gandhi ko hatao, Ratan Khatri ko prime minister banao".
Ratan Khatri has always been known to lead a simple and austere life and was always seen in his trademark kurta pyjama and a muffler tied around his head even while conducting his business. He has now given up Matka since more than a decade but continues to live in Mumbai, India.
Khatri's Matka System
The way this system operated was very simple. Mr. Khatri, who ran his empire directly from his apartment in Mumbai, would draw three cards daily at 9:00pm and the face value of the cards would be totalled up. Often, Khatri would be 'requested' by his prominent acquaintances to draw the opening cards at another location, in the presence of celebrities/politicians etc. Within few minutes, Khatri's matka numbers would be transmitted all across the country and even as far as places in London, Dubai and Iran, thus proving the power and extensive reach of his network and making it an international business.The game of matka is deceptively simple. Though cards are supposed to be drawn in a transparent manner in front of punters and patrons, it is not often the case. Operators are now using advanced manipulative and statistical methods in the matka business. The numbers which have minimum bets placed on them are drawn, resulting in gains of Rs 10 crore to Rs 12 crore for the bookies/operators on a daily basis. A bet of Rs 10 has the potential to result in Rs 1,500 for the better. Usually, a gambler tries multiple options/bets on a variety of numbers and combinations to make money.
To understand more about the workings of the game, lets say that, for example if the three opening cards drawn were the Ace of Spades, five of hearts and 9 of clubs. The opening number would be a sum of the three cards 1+5+9 = 15
The opening number would be 5 and the display on the walls of selected sites
would show a "matka" or pot with the following legendoooooijoo
159
5x
If 2, 3 and 4 was the next three cards drawn at 12 midnight,the final
display a few minutes after mid night would be
159
5x9
234
Betting will then take place on all the numbers, i.e. 159 or
234 or 59 or even 5 or 9 or all of them. For a 25 paise bet the returns are Rs 2.25.
The bookies all across Mumbai operate on kind of franchise. If the betting is heavy on a particular number and the punters won, bookies have been known to have disappeared overnight.
Current Matka Business in Mumbai
The Matka business in Mumbai is currently run by small-time bookies primarily in the area of Kalyan and Mulund and there have been instances of criminal involvement. Ratan Khatri, quoted in an article in the Indian Express(referenced below) expressed his sentiment on the current state of Matka in the city, by saying that the game has lost its previous widespread appeal because the business has now been taken over by criminals.Insiders said there are around 400 matka bookies in the city and above 1,000 across the state. The ‘hafta’ to police and other agencies across the state is estimated at Rs 6 crore each month. The matka business had come to a virtual standstill around 2003. The new kingpin, Pappu Saula, operates from an office in Mulund.[Citation - Mid-Day
Mid-day
Mid Day is an afternoon daily Indian compact newspaper. Editions in various languages are published in Mumbai, Bangalore, Delhi and Pune .-Establishment:...
news article referenced below].
In June and July 2008 the Matka business once again came to a stand still with the murder of Suresh Bhagat, son of Kalyanji Bhagat. Suresh and Pappu Saula both are said to have had ties with Mumbai gangster Arun Gawli
Arun Gawli
Arun Gulab Gawli , known to his followers as "Daddy", is an alleged criminal turned politician from Mumbai, India. He is based at Dagdi Chawl in Byculla- Saat Rasta, Mumbai...
who helped in orchestrating the murder alongside Suresh's wife. The media quoted the Mumbai police saying that the Matka business brought a 1000 crore monthly turnover to Savla and Bhagat.
Originations of Matka
The root of Matka gambling dates back to the time before independence. However, in those days it was not known as Matka. It was known as Ankada Jugar(gambling on figures i.e. digits in Gujarati).In the early days it depended on opening and closing rates of cotton traded on New York wholesale cotton market. The punters would bet their money on these numbers and the winning number would receive a return of 9 times the sum betted. The cotton rates were quoted in three digits. Once it so happened that for days together the open and close figures turned out to be 0, thus making the gamblers and their bookies lose heavily.
Eventually this shook the faith of the people in NY cotton figures. And thus was born the idea of gambling on indigenous open and close rates of wholesale cotton traded on Bombay's cotton exchange at Siwri (cotton exchange on harbour line). For many years Siwri cotton figures were reliably used by the betting community. Probably because of government interference, the idea of punting on Bombay cotton figures was given up in favour of Khatri's quick, clever and convenient Matka system.
Related information
- The term in Bombay - "Matka lagi" signifying a windfall gain has its originations from this game of Matka.
- There is no system save two to make money on the Matka. First, one can bet on either the open or close numbers. If a bet does not pay dividends, double the bet for the same number the next day and keep doubling until the payout. One of the ten numbers does have to show up. The possibility of picking a pair and its permutations and combinations could possibly only further worsen losses.
Legality and Gambling in India
This form of gambling is not legal as gambling and bookmaking in India is considered morally wrong. As such there are only casinos in two states in India, GoaGoa
Goa , a former Portuguese colony, is India's smallest state by area and the fourth smallest by population. Located in South West India in the region known as the Konkan, it is bounded by the state of Maharashtra to the north, and by Karnataka to the east and south, while the Arabian Sea forms its...
and Sikkim
Sikkim
Sikkim is a landlocked Indian state nestled in the Himalayan mountains...
. There was and has often been debate in Mumbai on the legalisation of Matka and gambling, just as horse-racing/betting has been legalised. Other than lotteries, legalised gambling in India is only limited to betting on horse-racing on the pretext of horse-racing being a "skill".