The Enforcement Directorate (ED) recently carried out searches at 22 locations connected to lottery tycoon Santiago Martin across six states, including Tamil Nadu, leading to the recovery of ₹12.41 crore in unexplained cash and the freezing of ₹6.42 crore in bank deposits.
The operation, conducted last week, also uncovered a range of digital devices, incriminating documents, and extensive records of significant investments in real estate in Coimbatore, Chennai, Mumbai, Dubai, and London, as well as substantial share market holdings, the agency said on 18 November 2024.
The Enforcement Directorate (ED) via its official X account, stated, “ED has conducted search operations at 22 premises in the States of Tamil Nadu, West Bengal, Karnataka, Uttar Pradesh, Meghalaya and Punjab under the provisions of PMLA, 2002 in connection with investigation against Santiago Martin and his entity M/s Future Gaming and Hotel Services Private Limited and other associates. During the search operations, various incriminating documents, digital devices, Cash of ₹12.41 Crore were recovered and seized, alongwithFDR of ₹6.42 Crore has also been freezed.”
ED has conducted search operations at 22 premises in the States of Tamil Nadu, West Bengal, Karnataka, Uttar Pradesh, Meghalaya and Punjab under the provisions of PMLA, 2002 in connection with investigation against Santiago Martin and his entity M/s Future Gaming and Hotel… pic.twitter.com/QETk5MgYXK
— ED (@dir_ed) November 18, 2024
The searches were part of an ongoing investigation into Martin and his company, M/s Future Gaming and Hotel Services Private Limited, along with its associates. The operation also targeted four printing presses involved in the production of lottery tickets.
This investigation stems from a case initiated by the Meghalaya Police, following a complaint by the Director of the Meghalaya State Lottery, and related FIRs from Kerala Police, which were later taken over by the CBI.
The main allegations against Martin and his group include monopolizing the lottery market by preventing other operators, selling fake lottery tickets, manipulating prize draws, and purchasing high-value winning tickets in cash to launder black money. These actions have led to significant financial losses for both the government and the public.
The ED’s probe has revealed that over 90% of the company’s business involves lottery tickets priced at ₹6, most of which offer prizes under ₹10,000—amounts that are non-taxable. The company has failed to maintain proper records of prize winners, as well as sold and unsold tickets. The structure of the lottery schemes is such that the company retains a large portion of the profits, while the state receives only a small share of the revenue.
The searches were carried out in various states, including West Bengal, Karnataka, Uttar Pradesh, Meghalaya, Punjab, and Tamil Nadu. In a previous investigation by the ED’s Kochi zone, it was found that Martin and his company had accumulated around ₹920 crore from the proceeds of illegal activities related to the lottery business.
Who Is Lottery Martin, What Is His Connection To The DMK?
Santiago Martin, often referred to as “Lottery Martin,” and his company, ‘Future Gaming and Hotel Services’, have been in the news since the Election Commission disclosed details of electoral bond transactions on 14 March 2024. The records revealed that Martin’s entity made political donations totaling ₹1,368 crore between April 2019 and January 2024. Martin is known to have close ties with several political parties, including the Communist Party of India (Marxist) in Kerala, the Dravida Munnetra Kazhagam (DMK) in Tamil Nadu, Trinamool Congress (TMC) in West Bengal, and the Congress party.
The Rise of Santiago Martin
Martin’s journey from humble beginnings to becoming a powerful figure in the lottery business is a classic rags-to-riches story. Born in Myanmar, Martin started as a laborer before returning to India in 1988. He founded Martin Lottery Agencies Ltd in Coimbatore, Tamil Nadu, and quickly became known as “Lottery Martin” during the lottery boom in South India. His business expanded across Tamil Nadu, Karnataka, and Kerala, and eventually, he established a vast lottery empire in the region.
Challenges and Expansion
In 2003, the Tamil Nadu government under Chief Minister Jayalalithaa banned lotteries, forcing Martin to pivot. He moved his focus to the northeastern states of India and even expanded into countries like Bhutan and Nepal, securing exclusive rights for lottery ticket distribution. By this time, his company, Martin Lottery Agencies, had an estimated net worth of over ₹7,000 crore.
To launder his earnings, Martin ventured into media and entertainment. He launched the SS Music television channel and financed the production of the film Ilaignan, which was also linked to DMK founder Karunanidhi’s 75th film as a scriptwriter. Some reports suggest that his film business may have been used to mask the illegal activities tied to his lottery operations.
Legal Troubles and Political Allegations
Martin’s business faced increasing legal scrutiny, particularly in 2011 when the Central Bureau of Investigation (CBI) accused him of defrauding the Sikkim government of ₹4,500 crore. In 2012, under the AIADMK government, he was arrested on charges of land grabbing, although his wife claimed this was a politically motivated attack involving the DMK.
By 2015, Martin’s operations attracted attention from multiple agencies. The Income Tax Department conducted raids across several states, and Kerala Police launched an investigation into his illegal lottery activities. In 2016, the Enforcement Directorate (ED) also initiated inquiries into money laundering connected to his lottery operations.
In 2023, the ED seized ₹457 crore from Martin under the Prevention of Money Laundering Act, linked to a case involving the misappropriation of funds intended for the Sikkim government.
Martin’s Expanding Business Empire
Aside from lotteries, Martin’s business ventures spanned various sectors, including healthcare, real estate, and media. His business holdings included Martin Homeopathy Medical College and Hospital, SS Music, and M and C Property Development. His real estate ventures included Martin Nanthavanam apartments and Leema Real Estate Private Limited.
Political Connections and Donations
Martin’s political influence is significant. His son-in-law, Aadhav Arjuna, is a key member of the Viduthalai Chiruthaigal Katchi (VCK), an ally of the DMK. Martin has also made significant financial contributions to various political parties, including the CPI(M) and Congress parties. He was reported to have donated ₹2 crore to Deshabhimani, the CPI(M)’s mouthpiece, and contributed millions to disaster relief funds, such as ₹5 crore for Cyclone Gaja relief in 2018.
Martin has maintained political relationships with whoever is in power, regardless of party affiliations, and has claimed to be one of the highest taxpayers in India.
The “Dear Lottery” and Allegations of Misuse
Martin’s company *Future Gaming* is the sole distributor of the “Dear Lottery,” a popular lottery in West Bengal. In 2022, the CBI revealed that TMC leader Anubrata Mondal and his daughter had won the lottery five times between 2021 and 2023. This raised questions about the integrity of the lottery and its political connections.
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