ED seizes over Rs 12 cr unexplained cash from Santiago Martin's properties

New Delhi: The Enforcement Directorate (ED) seized over Rs 12 crore in "unexplained" cash and frozen fixed deposits worth Rs 6.42 crore during recent multi-state raids targeting Santiago Martin, a Chennai-based businessman known as the ‘lottery king,’ and his associates, reported PTI.

Martin’s firm made headlines earlier this year when the Election Commission revealed it was the largest contributor to political parties via electoral bonds, donating over Rs 1,300 crore.

The ED conducted raids at 22 locations across Tamil Nadu, West Bengal, Karnataka, Uttar Pradesh, Meghalaya, and Punjab, including four lottery ticket printing presses. These searches were linked to an investigation into Martin and his companies, Future Gaming, Hotel Services Private Limited, and associated entities.

In a statement released on Monday, the ED alleged that "90 per cent of the business of the company is in lottery tickets of Rs 6 face value, against which most of the prizes were below Rs 10,000, which is non-taxable." It added, "No proper record was maintained by the company regarding prize winners and sold and unsold tickets." According to the ED, the lottery schemes were designed to ensure "substantial" profits for the company, leaving the organising state with only a "very small portion" of the revenue.

The ED’s money laundering probe is based on an FIR filed by the Meghalaya Police, following a complaint from the state lottery department, along with multiple Kerala Police FIRs that were later transferred to the CBI.

The agency alleges that Martin’s group "illegally" dominated the lottery market by preventing competition, selling "fake" lottery tickets, manipulating prize outcomes, and purchasing high-value winning tickets for cash to launder black money. These activities reportedly caused a "huge loss" to the exchequer and the public.

During the raids, the ED seized Rs 12.41 crore in unexplained cash, digital devices, and incriminating documents and froze fixed deposits worth Rs 6.42 crore. Records of significant investments in properties across Coimbatore, Chennai, Mumbai, Dubai, and London were uncovered, along with substantial investments in the share market, the agency said.

The ED has filed a chargesheet in the Kerala Police case against Martin and his companies, attaching assets worth Rs 622 crore. Martin’s firm, Future Gaming Solutions India Pvt Ltd, was the master distributor for Sikkim lotteries and has been under ED scrutiny since 2019.