The Enforcement Directorate (ED) has seized over Rs 18 crore in cash and FDs during search operations in at least 22 premises in six states of Tamil Nadu, West Bengal, Karnataka,Uttar Pradesh, Meghalaya, and Punjab in connection with lottery scam.
The search operation was conducted against lottery baron Santiago Martin and his companies M/s Future Gaming and Hotel Services Private Limited and other associates of 4 Printing presses in those states.
The search operation was initiated by the ED based on an FIR registered by Meghalaya Police on a complaint by the Director, Meghalaya State Lottery, and Kerala Police FIRs.
” The allegations against the group are that they have illegally captured the lottery market by not allowing others to operate, selling fake lottery tickets, manipulating winning prizes, and purchasing big amounts prize winning tickets against cash payment for converting black money into white leading to huge loss to the exchequer and general public,” an ED statement said.
The ED said “Over 90 percent of the businesses of the company are in the lottery tickets with a face value of Rs. 6 against which most of the prizes are below Rs. 10,000 which is non-taxable. No proper record is maintained by the company regarding prize winners, sold, and unsold tickets. Lottery schemes are designed by the company in such a way that substantial profit goes to the company and the organizing state
gets a very small portion of the revenue”.
The ED has confirmed that it seized “unexplained cash” amounting to Rs. 12.41 crore, various digital devices, and incriminating documents.
The federal agency during its three days raids late last week also froze bank FDR of Rs.6.42 crore and records of huge investments in the immovable properties in Coimbatore, Chennai, Mumbai, Dubai, and London .
The lottery baron also made huge investments in the share market, the statement added.
Earlier the ED also traced Kochi that Martin Santiago and his company had acquired Proceeds of Crime of around Rs. 920 crore in the lottery business at Kochi, out of which properties of Rs. 622 crore have been attached and a Prosecution Complaint has been filed for which the trial was in progress under the Prevention of Money Laundering Act (PMLA), 2002.
