LOTTERY TICKET SCAM
SHILLONG, Nov 20: The Directorate of Enforcement (ED) sleuths conducted search operations at 22 premises in different states, including Meghalaya, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in connection with the investigation against Santiago Martin and his entity M/s Future Gaming and Hotel Services Private Limited and other associates in a lottery ticket scam.
A statement from the ED said they conducted searches in Tamil Nadu, West Bengal, Karnataka, Uttar Pradesh, and Punjab, besides Meghalaya.
Four printing presses where lottery tickets have been printed were also covered under the search operation.
The ED initiated investigation on the basis of an FIR registered by Meghalaya Police on a complaint lodged by the Director, Meghalaya State Lottery and Kerala Police FIRs taken over by the CBI.
The main 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 amount prize winning tickets against cash payment for converting black money into white leading to huge loss to the exchequer and general public.
It has further come out that 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.
According to the ED, 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, it said.
The search has resulted into recovery and seizure of unexplained cash amounting to Rs 12.41 crore, various digital devices and incriminating documents.
“Further freezing of bank accounts worth Rs.6.42 crore has also been done during search operation. Records of huge investment in immovable properties at Coimbatore, Chennai, Mumbai, Dubai and London have also been found. They have made huge investments in the share market also,” the ED said.
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 crore have been attached and prosecution complaint has been filed, trial on which is in progress.
Further investigation is under progress, the ED said.