'FEMA' registered in Messi event fraud; ED to issue notice to sponsor

KOCHI: The Enforcement Directorate registered a case under the Foreign Exchange Management Act (FEMA) in connection with the sponsor transferring Rs 126 crore to a foreign agency under the pretext of bringing Lionel Messi to Kerala. The ED's preliminary conclusion is that the sponsor did not comply with the provisions of FEMA. Meanwhile, it is required that some agency register a case for the ED to investigate whether black money was used in the transaction (Prevention of Money Laundering Act). However, there is no obstacle to registering a case under the FEMA Act. That is why the case was registered suo motu.

The case was registered after evaluating the documents related to the transfer of the amount, the agreement signed by the sponsor, and the supporting documents. The report and documents of the State Sports Department Secretary were also collected. The GST Department also examined the information found by the Intelligence Wing.

Sponsors will be given notice

1. Sponsors will be given notice to submit details and documents regarding the money transaction

2. Documents regarding the sponsor's claim that the amount was paid with the approval of the Reserve Bank will also be sought

Crime Branch or Vigilance?

The state government may leave the investigation to the Crime Branch or Vigilance. The state agency will also investigate the financial transactions made to bring Messi. If the state agency registers a case, the ED may also register another case and investigate these matters. The source of the money transferred, the amount given to the sponsor by two financial institutions, the amount spent on renovating the Jawaharlal Nehru Stadium in Kochi, the source of the money, whether black money was laundered under the guise of the event, and the transparency of the money transactions will be examined in detail.