Enforcement Directorate Cracks Down on Lottery Kingpin Santiago Martin's Empire

The Enforcement Directorate launched a nationwide search, investigating lottery mogul Santiago Martin for alleged fraud and money laundering. Multiple locations across India were raided following several FIRs. The probe links Martin to schemes defrauding government funds via illegal lottery sales, resulting in asset seizures totaling hundreds of crores.

The Enforcement Directorate (ED) initiated a nationwide crackdown on Thursday targeting the business operations of lottery tycoon Santiago Martin. The swoop began early morning, encompassing approximately 20 sites across India, including significant forays in Chennai and Coimbatore in Tamil Nadu, Faridabad in Haryana, Ludhiana in Punjab, and West Bengal's Kolkata.

This extensive search derives momentum from a multitude of First Information Reports (FIRs) and complaints alleging that Martin's firms engaged in lottery fraud and illicit lottery sales. The ED's investigation zeroes in on a financial fraud case reportedly involving laundering of funds through lottery tickets, implicating high-profile individuals. A significant component of the investigation is a 2012 scam, suggesting the defrauding of the Sikkim government.

The Directorate had previously restrained assets valued at Rs 277.59 crore, comprising numerous immovable assets in Tamil Nadu. These actions stem from charge sheets issued by the Central Bureau of Investigation, prompting the ED to explore suspected money laundering tied to Martin and his enterprise, Future Gaming Solutions Private Limited, recently renamed Future Gaming and Hotel Services Private Limited.

The allegations point to a conspiracy orchestrated by Martin and accomplices to secure unlawful profits. This involved an unauthorized agreement with state officials, violating Lottery Regulations and evading payments due to Kerala from lottery sales. Incriminations include fabricating prize claim amounts for gain exceeding Rs 910.30 crore, spanning April 2009 to August 2010.

In a related 2022 operation, the ED also froze assets worth Rs 409.92 crore associated with Future Gaming and Hotel Services Private Limited and its distribution network across West Bengal. This ongoing probe builds on cases lodged by Kolkata Police adhering to provisions under the Indian Penal Code and the Lotteries (Regulation) Act, comprising frozen financial assets like bank balances and mutual funds.

(With inputs from agencies.)