ED conducts multi-city raids at ‘Lottery King’ Santiago Martin’s premises over money laundering probe

The raids travel arsenic portion of an ongoing probe aft revelations that Martin’s lottery concern donated much than Rs 1,300 crore successful electoral bonds to assorted governmental parties betwixt 2019 and 2024. The ED’s enactment aligns with a determination by the Madras High Court 2 weeks prior, which overturned a little court’s dismissal of charges and mandated further investigation.

The lawsuit dates backmost to March 2012, erstwhile the Chennai Crime Branch seized Rs 7.20 crore from the residence of Nagarajan, an subordinate of Martin’s. The cash, according to Nagarajan, was generated from lottery income involving Martin and his wife, Leema Rose, crossed Kerala and Maharashtra. This led the Chennai Crime Branch to record a First Information Report (FIR) for wealth laundering against Nagarajan, Martin, and Leema Rose, triggering an ED enquiry nether the Prevention of Money Laundering Act (PMLA) of 2002.

However, successful 2022, the Crime Branch filed a closure report, claiming insufficient grounds to substantiate wealth laundering. The Alandur Judicial Magistrate accepted this report, efficaciously closing the case.

The ED challenged this determination successful the Madras HC, which yet quashed the closure bid and questioned the integrity of the Crime Branch’s investigation. On October 28, the tribunal ruled that capable grounds existed to reopen the case, expressing suspicion implicit the abrupt displacement successful the Crime Branch’s stance.

The Madras HC’s caller judgement provided a scathing critique of the little court’s acceptance of the closure report. Justice SM Subramaniam and Justice V Sivagnanam noted that the closure was filed contempt overwhelming evidence, including fabrications intended to launder amerciable funds.

Central to the HC’s concerns was an alleged fraudulent transaction involving stamp papers utilized for a spot merchantability agreement. The transaction, dated March 2, 2012, was said to impact Rs 7.3 crore successful currency from Martin’s woman to a co-accused, G Moorthy. The stamp paper, however, was issued lone connected March 9, suggesting it was backdated. The discrepancy was established done treasury records, which showed that the stamp insubstantial had been issued by the authorities a week aft the day recorded connected the agreement.

It besides said that specified forgery was not adequately considered by the little tribunal and that the effort to contiguous tainted wealth arsenic untainted cannot beryllium accepted arsenic a specified procedural lapse.

Martin’s company, Future Gaming Solutions, serves arsenic the maestro distributor of Sikkim’s authorities lottery. According to the ED, the statement facilitated important nett done unauthorised income crossed assorted states, notably Kerala. The ED argues that specified activities caused fiscal losses to the Sikkim authorities exceeding Rs 900 crore, starring to the attachment of Martin’s assets worthy Rs 457 crore past year.

Adding a furniture of complexity to the lawsuit are Martin’s fiscal contributions to governmental entities. In 2023, reports from the Election Commission revealed that Future Gaming had purchased electoral bonds exceeding Rs 1,300 crore implicit the past 5 years. These contributions person sparked concerns implicit Martin’s imaginable power connected governmental processes, particularly arsenic his concern operates successful states wherever lotteries are different amerciable oregon heavy regulated.