Lottery king Santiago Martin set up 350 shell firms only to hold properties: ED

According to an assessment by the agency, these firms have been found to be only  “land-holding entities” without any actual business and no other source of funds except “diversion” from the lottery business to acquire properties.

Significantly, Santiago Martin’s company, Future Gaming, was the single largest donor of electoral bonds, having purchased Rs 1,368 crore in bonds between 2019- 2024.

The company, data showed, had donated across party lines: Trinamool Congress was its biggest beneficiary at Rs 542 crore; DMK a close second at Rs 503 crore; YSR Congress received bonds valued at Rs 154 crore and the BJP at around Rs 100 crore.

The agency has also alleged that Santiago Martin has “facilitated” money laundering for several PEPs (Politically Exposed Persons) belonging to Tamil Nadu and acquired properties in the names of these 350-odd partnership firms and LLPs by showing what is being described as “false liabilities”.

The ED has calculated that the book value of properties acquired using these “paper entities” would be more than Rs 3,000 crore and that their market value would be several times that figure.

It was during the latest searches conducted between November 14-16, 2024, that the ED seized records related to huge investments made by the group in immovable properties located in Coimbatore, Chennai as well as Dubai and London.

The ED has also alleged that Santiago Martin was “alienating” or selling some properties which had been attached by their zonal office in Kochi as early as 2019.

Among such properties was a land parcel in Kalipalayam, Tamil Nadu and another piece of land measuring 3.75 acres in the same area. In all, the ED has attached properties of the Future Group and its flagship company, Future Gaming and Hotel Services Private Limited (FGHSPL), valued at between Rs 910-920 crore.

As reported first by The Indian Express (December 25, 2024) in an ex-parte order, the Supreme Court had restrained the ED from accessing information from the electronic devices seized during searches conducted on Santiago Martin, his relatives and employees at 22 places in six states during the same searches conducted in November.

In all, 12 categories of electronic devices had been seized, including 17 mobile phones, hard disks of computers and pen drives.

As per the SC order dated December 13, 2024, the Santiago Martin case would be tagged along with at least four similar cases being heard by the apex court where the seizure of electronic items — and the use of data stored therein — has been challenged.

The ED claims Santiago Martin and his firms are using the SC order as a delaying tactic. While Santiago Martin himself has not appeared before the agency, his son, Jose Charles, appeared twice in December 2024 but, subsequently, did not come for his statement to be recorded arguing that he had been granted “relief’’ by the Supreme Court.

When contacted, Supreme Court lawyer Rohini Musa, who had filed the petition asking for a stay on electronic evidence collected from Santiago Martin and his associates being used, told The Indian Express that it was “unfair” for the ED to claim that the restraining order was being used for non-appearance by him.

She asserted, “That is not a fair statement, the order speaks for itself since it is only for particular proceedings. The other cases should continue in accordance with law. The ED has yet to file a response on the restraint and as far as other allegations go, such as existence of a large number of property-holding companies, the ED should also lay out those allegations before the court.”