ED begins investigation into Messi controversy; to examine whether foreign exchange regulations were violated

KOCHI: Reports say the Enforcement Directorate (ED) has begun a preliminary inquiry into the financial transactions related to bringing Lionel Messi to Kerala. Whether any violations of foreign exchange regulations occurred will be mainly examined. The ED's action comes amid controversy over the transfer of money abroad by the event's sponsor.

A report released by the sports department secretary says that significant irregularities took place in the transactions conducted to bring Messi to Kerala. The central agency is reportedly examining the matter based on the information contained in that report.

Earlier, reports emerged that Reporter Broadcasting Company (RBC), one of the sponsors of the project, had transferred crores to abroad. Although the company claims that the payments were made with the permission of the Reserve Bank of India, the ED is investigating whether any regulations were violated.

The sports secretary's report also alleged that the terms of the agreement were violated without the government's knowledge and that a major financial fraud had taken place. According to the contract, two matches were supposed to be held when Messi comes to Kerala. The expenses were estimated at $15 million. Later, the number of matches was reduced to one, but the payment was not reduced, and no reason was given for this. The total expenditure is estimated at Rs 200 crore, with a potential profit of Rs 82 crore. However, there is no agreement on who would share this profit. It is also unclear what the government would receive from the project.

It was stated that the sponsors would finance the project, but the government file does not explain what benefits they would receive in return. The correspondence related to the project is also not in government's possession. There are also unanswered questions regarding who would bear Messi's security expenses, what financial liabilities the government would have, the eligibility of the sponsors, and how they were selected. All these things were allegedly kept undisclosed.

Minister O J Janeesh said that all these issues had been examined at the departmental level and that a report had been submitted to the chief minister. It is reportedly possible that the ED may seek the departmental investigation reports related to the project.