Messi event row: Central agencies waiting to intervene; govt delaying investigation

KOCHI: The Enforcement Directorate (ED) is waiting for the police to register a case, so they can start an investigation into the fraud committed in the name of Lionel Messi. The Income Tax Department (IT) is waiting for the complaint. The agency might investigate the possible black money dealings in the Rs 126 crore sent by the sponsor ‘Reporter Broadcasting Company’.

However, the ED can investigate only based on an FIR registered by the police or any other agency in financial fraud cases. Though the police said that they will investigate based on the report of the Sports Department Secretary, no action has been taken yet.

ED has shown interest in the case as it involves foreign-related money transactions. IT department sources also say that it can be investigated only after receiving a complaint or a recommendation from a government agency. The ED will collect the report of the department secretary, information about money transactions made through sponsor banks, etc. They will also check whether the Reserve Bank's permission was obtained. If money laundering, ambiguity regarding the source of money, or violation of the Foreign Exchange Management Act (FEMA) are found and the police register an FIR, the ED will enter into action.

Income Tax Department sources said that no complaint has been received so far. Public funds were not used in the transaction; private funds were used. The investigation department can check the source of the money and whether the tax was paid or not.

Government yet to announce an investigation

Even after a week since the Secretary's report was released, the government has not announced an investigation. Meanwhile, the central investigative agencies have said that there are limitations on intervening without the police registering a case.