Rs 22.68 crore tax evasion, more irregularities suspected in Messi event row; Government seeks legal advice

THIRUVANANTHAPURAM: The government sought legal advice on the type of investigation to be conducted into the irregularities and fraud committed under the pretext of bringing football legend Lionel Messi to Kerala. The advice was sought from the Advocate General and the Director General of Prosecutions.

The Home Department suggested a special team led by the Crime Branch chief investigate the case. Since there are irregularities including corruption, foreign exchange violations and GST fraud, the government sought advice on the appropriate investigative agency to take up the case. The SIT of the GST department is investigating. The Enforcement Directorate has registered a case in the black money transaction. If there is a violation of foreign exchange regulations, CBI should investigate. However, the police had informed the government that they would recommend a CBI investigation only if a case is registered here and this violation is found. The government was also prompted to seek legal advice that an investigation would be required abroad as international transactions were involved.

The investigation will also look into the procedure by which the government gave permission to a private company to sign a contract with the Argentine Football Association and whether permission was granted after inviting expressions of interest. The market value, financial capacity, or source of funds were not considered when the company was awarded the contract. The amount of funds provided by the sponsor and the source of the funds will be investigated. The foreign trips made in the name of bringing Messi to Kerala, the terms of the contract, as well as official documents and bank transactions will be scrutinised. It was found that the sponsors, Reporter Broadcasting Company, received Rs 206 crore from two other financial institutions in addition to loans and evaded taxes of Rs 22.68 crore.