Indian probe agency uncovers 350 shell firms linked to 'Lottery King' Santiago Martin

February 17, 2025

Indian probe agency uncovers 350 shell firms linked to 'Lottery King' Santiago Martin

The Enforcement Directorate (ED), after nearly a decade of investigation, has found that lottery king Santiago Martin and his companies set up more than 350 entities, or “shell” companies, with little to no business activity, The Indian Express reported.

According to senior ED officials, these entities include 15 partnership firms, 200 companies, and 110 limited liability partnerships (LLPs). The agency concluded that these firms functioned primarily as “land-holding entities” with no legitimate business activities or funding sources other than money diverted from Martin’s lottery business for property acquisitions.

In its most recent searches conducted in November 2024, the ED seized documents related to investments in immovable properties across Coimbatore, Chennai, Dubai, and London.

SiGMA News reached out to the Enforcement Directorate for comments on the investigation into Santiago Martin and his companies. However, the agency had not responded by the time of publication of this report.

Political donations & money laundering

Data revealed that Martin’s company, Future Gaming, was the largest purchaser of electoral bonds, acquiring bonds worth Rs 1,368 crore (approximately $157 million) between 2019 and 2024. The company made donations across party lines, with the most significant beneficiaries being Trinamool Congress (Rs 542 crore or about $62 million), DMK (Rs 503 crore or about $58 million), YSR Congress (Rs 154 crore or about $18 million), and BJP (around Rs 100 crore or about $11 million).

The ED has accused Martin of facilitating money laundering for several Politically Exposed Persons (PEPs) in Tamil Nadu, allegedly acquiring properties using “false liabilities” through his extensive network of shell companies. The agency estimates that the book value of properties acquired via these entities exceeds Rs 3,000 crore ($345 million), with a higher market value.

During searches in November 2024, the ED found evidence suggesting that Martin was “alienating” or selling properties that had been attached by the ED’s Kochi office in 2019. These included land parcels in Kalipalayam, Tamil Nadu, among others. So far, properties worth between Rs 910 crore ($104.6 million) and Rs 920 crore ($105.6 million), linked to Future Gaming and its flagship company Future Gaming and Hotel Services Private Limited (FGHSPL), have been attached by the ED.

Supreme Court restrains ED’s access to electronic evidence

As first reported by leading news site The Indian Express on 25 December 2024, the Supreme Court issued an ex-parte order preventing the ED from accessing electronic devices seized during its November 2024 searches at 22 locations across six states. Among the 12 categories of seized devices were 17 mobile phones, computer hard disks, and pen drives.

The Supreme Court, in its 13 December 2024 order, directed that Martin’s case be tagged along with at least four other similar cases challenging the seizure and examination of electronic devices. The ED claims Martin and his associates are using this order to delay proceedings. While Martin himself has not appeared before the ED, his son, Jose Charles, appeared twice in December 2024 but later declined further appearances, citing “relief” granted by the Supreme Court.

Who is Santiago Martin?

Santiago Martin, widely known as the ‘lottery king, ’ has gained significant attention as the largest donor through India’s electoral bond scheme. His company, Future Gaming and Hotel Services, bought electoral bonds worth Rs 1,368 crore ($157.24 million) between April 2019 and January 2024.

Martin’s journey began in humble circumstances as a labourer in Myanmar before he founded Martin Lottery Agencies Ltd in Coimbatore. His lottery business expanded into Karnataka, Kerala, and later into northeastern states like Sikkim, Meghalaya, and Arunachal Pradesh. Over the years, he diversified into real estate, healthcare, education, casinos, agro-business, and Tamil cinema.

Ongoing probe & past controversies

The ED has been investigating Martin under the Prevention of Money Laundering Act (PMLA) for alleged financial irregularities linked to his vast lottery network. As part of this probe, the agency conducted multiple raids in Chennai and other locations in November 2024.

Martin challenged the ED’s seizure of his electronic devices, arguing that it violated his fundamental rights, including the right to privacy. The Supreme Court, considering broader legal implications, has temporarily restrained the ED from accessing the data, highlighting the ongoing debate over investigative agencies’ access to personal electronic devices.

While the ED’s investigation into Martin’s financial dealings continues, the Supreme Court’s order restricts access to potentially crucial digital evidence. This may temporarily slow the probe, but the final decision to examine these devices will depend on the court’s interpretation of legal safeguards.

Martin’s legal troubles

This is not the first time Martin has faced legal scrutiny. In 2008, he was also accused of defrauding the Sikkim government of Rs 4,500 crore ($519.3 million) in a lottery scam. In 2019, the ED alleged that Martin’s company illegally retained unsold lottery tickets to claim top prizes, earning Rs 910 crore ($104.6 million).

During J Jayalalithaa’s tenure as Tamil Nadu Chief Minister, Martin also faced land-grabbing allegations but was later released on bail after the High Court quashed his detention.