ED set to make first move; money laundering case likely alongside FEMA charges

KOCHI: The Enforcement Directorate (ED) will intensify action by leveraging the case registered by the police Special Investigation Team (SIT) regarding a multi-crore fraud involving a flopped event planned with football legend Lionel Messi. Moves are underway to register a case against Reporter Broadcasting Company and its Managing Director, Anto Augustine, under the Prevention of Money Laundering Act (PMLA). As part of this process, ED collected details from the FIR filed by the SIT and information gathered during simultaneous raids conducted at five locations recently.

The ED can initiate proceedings under the PMLA only as a follow-up to cases registered by the police or other agencies. In the SIT case, Anto Augustine is named as the first accused, and Reporter Broadcasting Company as the second accused. The charges include defrauding the government and the public, as well as criminal conspiracy.

The Enforcement Directorate (ED) previously registered a case regarding the violation of Foreign Exchange Management Act (FEMA) norms in connection with the transfer of Rs 126 crore to a foreign account.

The ED collected crucial contract documents and details of other financial transactions related to the overseas remittance. Records confirming that the funds were sent abroad via SBI were obtained. However, since allegations of fraud are also involved, the ED is empowered to conduct a more rigorous investigation under the Prevention of Money Laundering Act (PMLA). The case will be formally registered in the coming days following a detailed review by the ED's intelligence wing.

The Enforcement Directorate (ED) conducted a preliminary inquiry as soon as Messi's visit sparked a controversy. The ED registered a case after reports emerged alleging that a massive financial transaction took place in connection with the visit.