Madras High Court Seeks ED’s Clarification on Santiago Martin’s Property Confiscation

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CHENNAI: The Madras High Court has directed the Directorate of Enforcement (ED) to clarify whether it intends to issue a notice for the confiscation of attached properties belonging to lottery baron Santiago Martin.

According to DT Next, Martin’s appeal was heard by a division bench comprising Justice R. Suresh Kumar and Justice A.D. Maria Clete. His counsel cited a Supreme Court judgment, arguing that under Section 8(4) of the Prevention of Money Laundering Act (PMLA), the ED should take only constructive possession of the properties rather than physical possession. He also referenced Article 300A of the Constitution, which limits executive authorities from taking possession of private property.

ED’s Authority Over Attached Properties Under PMLA

Martin further informed the court that he had mistakenly sold two attached properties valued at ₹70 lakh in 2021. He stated that he had filed petitions expressing his willingness to provide a fixed deposit equivalent to the amount. However, special public prosecutor N. Ramesh opposed this claim, asserting that the ED holds the authority to take possession of attached properties. He stated, “It has not yet decided on taking possession and would initiate the process only after issuing notice and providing adequate opportunity to the accused.”

The High Court has now instructed the ED to confirm whether it plans to issue a notice to Martin and has scheduled the next hearing for March 4. The case originated from a charge sheet filed by the CBI’s Cochin unit on February 3, 2014, which alleged that Martin caused financial losses to the Sikkim government by illegally selling lotteries in Kerala. The ED later accused him of money laundering and attached several of his properties, including those in Tamil Nadu.

Martin had previously challenged the property attachment before the Appellate Tribunal in Delhi. However, his appeal was dismissed on July 8, 2024. The forthcoming hearing is expected to determine whether the ED will proceed with the property confiscation process.

Legal experts are closely monitoring the case as the court awaits the ED’s response in the next hearing.

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