INDIA: The Enforcement Directorate (ED) has filed a charge sheet against M/s Future Gaming & Hotel Services Private Limited (FGHSPL) and 15 other companies in a case under the Prevention of Money Laundering Act (PMLA). The charge sheet was filed before a special PMLA court in Kolkata.
This action by the ED stems from an investigation initiated under the PMLA 2002, based on FIRs registered by Kolkata Police against FGHSPL and other firms under various sections of the Indian Penal Code (IPC) and the Lotteries Regulation Act 1998. The court has acknowledged the charge sheet filed by the ED.
The case revolves around the sale of lotteries organized by the states of Sikkim and Nagaland across India, including West Bengal. The investigation revealed that FGHSPL entered into agreements with various state governments to sell state-organized lotteries but allegedly cheated these governments by not depositing the entire sale proceeds generated from the lottery sales.
The modus operandi also involved retaining unsold lotteries, claiming prizes on unsold tickets, manipulating data to show unsold prize-winning tickets as sold, and claiming prizes in the pre-GST period up to 2017.
During the investigation, proceeds of crime totaling Rs 411 crore were attached or frozen in the bank accounts of the accused.
Earlier this year, the ED provisionally attached movable assets of FGHSPL and its sub-distributors/area-distributors in the form of balances in bank accounts and mutual fund holdings.
The investigation revealed that proceeds from lottery ticket sales were illegally diverted towards gifts and incentives through modifications to the prize structure of lottery schemes without approval from the organizing state governments.
FGHSPL and its sub-distributor companies are alleged to have illegally claimed around Rs 400 crore between 2014 and 2017.
M/s Future Gaming & Hotel Services Pvt. Ltd. is the sole distributor of Paper Lottery organized by the states of Sikkim and Nagaland, known for running the popular “Dear Lottery.”
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