Today, On 12th July, The Supreme Court questioned whether it is in the Enforcement Directorate’s interest to first resolve the predicate offense before addressing the money laundering charges. This query arose while considering a plea by Santiago Martin, known as the “lottery king.” Martin seeking to postpone his trial under the Prevention of Money Laundering Act (PMLA) until the completion of a related Central Bureau of Investigation (CBI) case.
New Delhi: The Supreme Court, On Friday, suggested that it might be more practical for the Enforcement Directorate (ED) if predicate offenses (the underlying crimes related to money laundering allegations) tried before proceeding with the ED’s money laundering cases.
The ED authorized to investigate money laundering only after criminal complaints, which involve predicate offenses listed in the schedule of the Prevention of Money-Laundering Act (PMLA), registered.
A Bench comprising Justices Abhay S. Oka and Augustine George Masih informed that there is no clear ruling on whether a PMLA trial must follow the conclusion of a trial for predicate offenses.
Addressing the ED’s counsel, the Court remarked,
“The issue is whether the predicate offense should be tried first. Tell us, is it not in your interest for the predicate offense to be decided first? This is a question of law that needs hearing,”
The Court made the observation while addressing a petition filed by Santiago Martin, known as the “lottery king.”
Martin facing prosecution by both the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) in relation to an alleged lottery scam. This scam reportedly associated with the sale of Sikkim government lottery tickets in Kerala.
Reports indicate that Martin has been accused of causing an estimated loss of over Rs. 900 crores to the Sikkim government.
Recently, he gained attention for becoming the largest single donor of electoral bonds, contributing Rs. 1,368 crores, according to data disclosed by the State Bank of India (SBI).
The CBI charged Martin with offences such as cheating and criminal conspiracy under the Indian Penal Code (IPC), as well as violations of the Lotteries (Regulation) Act of 1998. Meanwhile, the ED accused him of involvement in money laundering.
Earlier this year, Martin approached the Supreme Court with a request to postpone the trial against him in the Prevention of Money Laundering Act (PMLA) case until the completion of the CBI case trial.
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In April, the Supreme Court provided interim relief by staying the trial against Martin in the PMLA case.
The next hearing on the matter is scheduled for the last week of August.
The ED has been directed to file a counter on the broader issue of whether trials for predicate offences should be concluded before proceeding with PMLA case trials.
Senior Advocate Aditya Sondhi and advocate Rohini Musa represented Martin.