SIT flags ₹25-crore tax fraud in Lionel Messi’s Keralam visit proposal

A special investigation team (SIT) of Keralam’s finance department has reported purported tax evasion to the tune of ₹25.78 crore in its probe into the proposed visit of Lionel Messi and the World Cup-winning Argentine national football team to the state to play a friendly match.

The SIT, in its inquiry report submitted to the commissioner of State Goods and Services Tax department, has recommended probes by multiple agencies in the case.

According to officials, the purported tax evasion by Reporter Broadcasting Corporation, the private sponsor of the Messi visit, amounted to ₹25.78 crore, of which ₹22.68 crore was IGST not paid on foreign remittances made to the Argentine Football Association (AFA).

The SIT report recommends that the case be referred to Enforcement Directorate (ED) to probe violations under the Prevention of Money Laundering Act (PMLA) and FEMA while Income Tax department can probe alleged unexplained credits by the private sponsor of the event.

State sports minister OJ Janeesh told reporters on Thursday that it was clear that there were several procedural lapses. “Additionally, several financial transactions took place. Were there approvals for such transactions? Was the financial stability of the private sponsor examined? The truth will soon come out,” said Janeesh.

The alleged irregularities by the private sponsor first came to light after a preliminary inquiry report was submitted by the sports department to the State government in August. That report had flagged several violations including service tax fraud on foreign remittances, lack of a transparent tender process in selecting the sponsor, formal communications regarding the event being restricted to the former sports minister’s office and absence of a formal agreement between the Keralam government and the AFA.

The inquiry report stated that there was no confirmation from the AFA that the team would play in Keralam even when the sports department wrote to the Union government requesting for permission to hold the match in October, 2025.

The failure to bring the World Cup-winning team to Keralam had resulted in the UDF and the BJP distributing posters and leaflets, blaming the former sports minister and the LDF-led government for generating false hope among football fans in the state.