Financial fraud in name of bringing Messi to Kerala; ED registers FEMA case

KOCHI: The Enforcement Directorate (ED) has registered a case under the Foreign Exchange Management Act (FEMA) over financial transactions carried out in the name of bringing Argentine football star Lionel Messi to Kerala. The case is following the revelations of sending Rs 126 crore abroad. The ED has collected documents related to the transfer of funds and details of the agreement claimed by the sponsor. ED suspects violations of FEMA regulations in the transfer of money.

In the initial stage, the ED has also issued a notice seeking documents from the government. The agency had collected information from the GST Department the other day. The investigation is focused on how the money was transferred abroad and the source of the funds. The ED is presently conducting a preliminary inquiry.

The ED had conducted inspections against the sponsor last year following a complaint related to money laundering in connection with the Argentina project. However, the investigation did not progress because other agencies had not registered an FIR. The ED, however, has the authority to directly register cases involving FEMA violations.
An investigation by the sports department had earlier found that the government had not been provided with documents showing that the sponsor had transferred money abroad to the Argentine Football Association or that the Argentine association had received the funds. The LDF government had also ignored a police warning against the sponsor during efforts to bring the Argentine football team to Kerala.

Intelligence agencies had warned the government that central agencies were monitoring the financial sources of the sponsor, Reporter Broadcasting Company, and that an ED investigation against the company could turn into a move against the government. Even after the report was submitted to then chief minister Pinarayi Vijayan, who also held the home portfolio, a high-level meeting chaired by the chief minister was held in Kochi to review preparations for the visit.

The police had informed the government about details of the 19 cases registered against the sponsor, including charges of cheating. The police report also stated that there were suspicions that the sponsor's announcement that Messi would visit Kerala even before FIFA’s approval was obtained, was primarily for promotional purposes.