New Delhi, November 19
Directorate of Enforcement (ED) has conducted search operations at 22 premises under the provisions of Prevention of Money Laundering Act (PMLA), 2002 in connection with investigation against Santiago Martin and his entity Future Gaming and Hotel Services Private Limited and other associates.
The searches were conducted in Tamil Nadu, West Bengal, Karnataka, Uttar Pradesh, Meghalaya and Punjab. The ED seized four printing presses where lottery tickets have been printed.
ED initiated investigation on the basis of FIR registered by Meghalaya Police on complaint by the Director, Meghalaya State Lottery and Kerala Police FIRs taken over by CBI.
The main allegations against the group are that they have illegally captured lottery market by not allowing others to operate, selling fake lottery tickets, manipulating winning prizes, and purchasing big amount prize winning tickets against cash payment for converting black money into white leading to huge loss to the exchequer and general public.
According to the CBI, over 90% of the business of the company is in the lottery tickets with 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 organising state gets very small portion of the revenue.
The search has resulted into recovery and seizure of unexplained cash amounting to Rs. 12.41 crores, various digital devices and incriminating documents. Further freezing of bank FDR of Rs.6.42 Crore has also been done during search operation. Record of huge investment in immovable properties at Coimbatore Chennai, Mumbai, Dubai and London have also been found. They have made huge investments in share market also.
In the previous investigation in the matter at ED, Kochi, it was found that Martin Santiago and his company had acquired Proceeds of Crime of around Rs. 920 Crore in lottery business, out of which properties of Rs. 622 crores have been attached, officials further informed.
