Kerala has ordered a high-level probe into the alleged “betting mafia” involving a controversial lottery distributor.
Finance Minister T M Thomas made the disclosure in the state assembly yesterday in response to a demand by the Congress-led opposition, which claimed ‘lottery king’ Santiago Martin was “back to his old business here.”
Thomas admitted that “parallel lottery” – betting on the last four digits of the state lottery draw – was rampant in the northern districts of Kannur, Wayanad, Kozhikode, Malappuram and Palakkad.
Bettors write a four-digit number on a piece of paper and local agents conducts the “parallel lottery.” Those who correctly predict the number when the state lottery holds its weekly draws collect the prizes.
“I accept all that the opposition said except charges of political links to the racket,” Thomas said adding inspector general Balram Kumar Upadhyay would head the probe.
The state loses massive revenue from the racket. Martin and his key man in Kannur, one of the monopoly agents of Kerala lottery in the region, were running the business, it was claimed.
The Kerala High Court had on August 6 allowed authorities to attach Martin’s assets worth Rs1.22bn in money laundering cases.
E P Jayarajan, a top leader of the Communist Party of India (Marxist), which leads the ruling coalition, had courted controversy in 2008 by accepting Rs20mn from Martin for the party mouthpiece Deshabhimani.
M K Damodaran, a former advocate general, had to resign under pressure as legal adviser to Chief Minister Pinarayi Vijayan after widespread criticism for appearing for Martin in the money laundering cases.
“This menace has to be curbed and the government is ready to accept any suggestions,” Thomas told the opposition who demanded an adjournment of the regular businesses to discuss the issue.
Congress member V D Satheeshan, who gave notice for the adjournment motion, said the racket was being operated online and through SMS.
“The ‘lottery mafia’ from other states are trying to gain a foothold in Kerala after they were pushed out of the state in 2011 soon after we came to power,” he said. “We stopped the plunder and the government lottery revenue rose more than 10 times, from Rs5.71bn in 2010-2011 to Rs63.18bn in 2015-16. It should not go back to the old days,” Satheeshan warned.
He reminded the government that the proceeds from lottery sales went to the Karunya Benevolent Fund for providing assistance to terminally ill and those who needed critical surgeries and treatment.
Opposition leader Ramesh Chennithala said they will not stage a walkout after the minister’s assurance to constitute a probe.
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