India’s ED attaches $18 million in assets over lottery scam case

Saturday 9th of April 2016

Income Tax Department seized cash over 45 crores

Over Rs. 122 crores (US$18 million) has been identified by India’s Enforcement Directorate (ED) in connection to the Karnataka Lottery scam case, local media reports.

The assets were attached under the Prevention of Money Laundering Act (PMLA) and allegedly belonged to companies associated with lottery distributor Santiago Martin, who is under investigation for his involvement in the Karnataka Lottery Scam.

Lottery business was banned in the state of Karnataka in 2007, however, the ban gave rise to a massive illegal lottery business allegedly headed by local kingpin Pari Rajan along with ‘involvement’ of senior officers, according to local media.

Police estimates the lottery racket rakes in more than Rs 100 crore per year.

The agency in a statement identified the firms as Daison Land and Development Private Limited, Charles Realtors Private Limited, Martin Multi Projects Private Limited and Daison Luxury Villas Private Limited belonging to Santiago Martin, a lottery distributor known for involvement in the Karnataka lottery scam.

“Investigation of the Directorate has established that manipulations done by the partnership firm M J Associates partnered by Martin and Jayamurughan resulted in unlawful financial gain to its partners. This proceeds of crime was used for creating assets which have now been attached," said the agency.

The total value of the attachment done under PMLA laws is Rs 122.40 crore, said the agency.

Lottery Case Scam Money laundering