Enforcement Directorate Challenges Closure Order of Lottery Scam Case

CHENNAI, India (December 26, 2023) — According to local media reports the Enforcement Directorate (ED) has moved the Madras high court challenging the closure order of a case registered in 2012 in connection with seizure of 7 crore in cash from a close associate of lottery operator Santiago Martin.

The ‘Times of India‘ reported that admitting the plea, a division bench of Justice S S Sundar and Justice Sunder Mohan directed the state police and Martin to respond to the plea.

TNN reported the issue pertains to a raid conducted by the Chennai police at the house of M Nagarajan, a close associate of Martin. During the raid, 7.2 crore in unaccounted cash was seized.

It came to light that Nagarajan had worked in the lottery companies since 1981 and later began a lottery business on his own. He further admitted that the cash was the sale proceeds of lottery tickets illegally printed and sold by Martin across Tamil Nadu.

Later, an unregistered sale agreement dated March 1, 2012 was submitted as if the amount had been paid by Martin and his wife to Nagarajan in cash as an advance sale consideration.

But it was found that the stamp paper itself was sold by the treasury only on March 9, 2012 and hence the accused were guilty of fabrication of false evidence to give false explanation for the seized cash.

The Supreme Court held that a prima facie case was made out to investigate the case. ED had also registered the case against the accused for the proceeds of crime arising out of the crime. However, the state police suddenly filed a closure report as if there was no evidence to proceed in the case and the magistrate accepted the closure report, ED alleged.

SOURCE: Times News Network / The times of India.