Lottery King Santiago Martin Allegedly Operates 350 Shell Firms to Hold Properties: ED Investigation

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The Enforcement Directorate (ED) has uncovered that lottery businessman Santiago Martin and his family members have set up over 350 shell firms allegedly to hold properties. According to an assessment by the agency, these entities have little or no business activity and are primarily used for land acquisitions.

The source for this article is The Indian Express, which reported that the ED has been investigating Martin’s business dealings for almost a decade. Recent findings suggest that these firms were created to divert lottery earnings into real estate investments.

Top ED officials stated that the 350 entities include 15 partnership firms, 200 companies, and 110 limited liability partnerships (LLPs). The agency found that these firms do not have independent revenue sources apart from diverted lottery business funds. The estimated book value of these properties is over Rs 3,000 crore, with the market value being significantly higher.

From Lottery Fortunes to Real Estate Empire: ED Uncovers 350 Shell Firms

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 investigation also revealed that Martin’s companies made substantial donations to political parties. The Trinamool Congress received Rs 542 crore, while the DMK got Rs 503 crore. The YSR Congress received Rs 154 crore, and the BJP was given around Rs 100 crore through electoral bonds.

The ED has alleged that Martin facilitated money laundering for politically exposed persons (PEPs) in Tamil Nadu. It claims that he used these 350 firms to acquire properties under false liabilities. The agency has also accused him of attempting to sell or alienate properties attached by the ED in 2019. Some of these properties include a land parcel in Kalipalayam, Tamil Nadu, and another 3.75-acre land in the same area.

During searches conducted between November 14-16, 2024, ED officials seized records of real estate investments in Coimbatore, Chennai, Dubai, and London. Properties worth Rs 910-920 crore belonging to Future Gaming and Hotel Services Private Limited (FGHSPL) were also attached.

A Supreme Court order dated December 13, 2024, has restrained the ED from accessing electronic devices seized during searches at 22 locations across six states. The devices include 17 mobile phones, computer hard disks, and pen drives. The order has been tagged with similar cases challenging the seizure and use of electronic evidence.

The ED claims that Santiago Martin and his firms are using the Supreme Court order to delay investigations. While Martin has not appeared before the agency, his son, Jose Charles, appeared twice in December 2024. However, he later refused to provide further statements, citing relief granted by the Supreme Court.

Supreme Court lawyer Rohini Musa, representing Santiago Martin, stated that the ED’s claims of non-cooperation were unfounded. She emphasized that the Supreme Court’s restraining order was specific to electronic evidence and did not prevent other proceedings from continuing.

The ED has yet to file a response to the Supreme Court’s order. Meanwhile, investigations into the alleged misuse of shell companies for property acquisitions and money laundering continue.

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