Published Sep 10, 2026 | 1:14 PM ⚊ Updated Sep 10, 2026 | 1:19 PM
A social media post by the then Sports Minister V Abdurahiman in June 2025 saying Messi will come.
The State Finance Department’s Special Investigation Team (SIT) has found suspected GST evasion of ₹25.78 crore in transactions involving a private company’s efforts to bring Argentine football icon Lionel Messi and the 2022 FIFA World Cup-winning team to Keralam for an exhibition match in Kochi in 2025.
The SIT, headed by GST Deputy Commissioner C Brijesh, has submitted its 50-page report to the GST Commissioner after examining the suspected tax evasion and the alleged delay in initiating recovery proceedings.
A 10-page preliminary report had been submitted earlier.
The investigation found that ₹126 crore was remitted by Reporter Broadcasting Company to a foreign entity in two instalments in 2025. Of this, ₹77.16 crore was transferred in June and the balance in November.
The SIT has held that the amount attracted GST even though it was paid as an advance. Under Section 13(3) of the GST law, the tax liability arises on such payments, with the transaction falling under the reverse-charge mechanism since the recipient was a foreign entity.
The SIT further put the total alleged tax evasion at ₹25.78 crore, revising the figure upward from the ₹22.68 crore estimated earlier. According to the SIT, the bulk of the alleged evasion—₹22.68 crore—relates to IGST that was allegedly not paid under the Reverse Charge Mechanism (RCM).
The SIT has recommended recovery of the ₹25.78 crore allegedly due from Reporter Broadcasting Company along with applicable interest and penalty. It has also called for recovery proceedings to be initiated in the event of default. Further action on the tax findings will be taken by the GST Commissioner.
Earlier, a case was registered by the Kanhangad GST office in connection with the remittance.
Reporter Broadcasting Company managing director Anto Augustine subsequently appeared before the GST Intelligence office at Kanhangad and gave his statement.
The SIT has also flagged serious lapses in the handling of the case, alleging that officials delayed the collection of tax from the sponsor despite the transaction having been brought to the department’s attention by GST intelligence. The report alleges that the tax recovery was deliberately delayed, with some higher authorities, including a Deputy Commissioner at the GST headquarters, intervening to stall the process.
The team has recommended immediate recovery of the tax and action against officials responsible for the delay.
An inquiry was ordered by Chief Minister VD Satheesan after questions were raised over why the investigation had stalled despite the foreign remittance being detected through banking channels.
The tax authorities had also issued several notices to the company, but the proceedings did not result in recovery, according to the findings.
The SIT has further examined discrepancies in the expenditure claimed for the proposed event.
While the stadium renovation was estimated at around ₹8 crore, the sponsor reportedly claimed to have incurred expenditure of about ₹70 crore. It’s said that the findings could have wider ramifications.
The government may consider referring aspects of the investigation concerning the company’s constitution and financial structure to the Registrar of Companies and the Serious Fraud Investigation Office (SFIO), based on legal advice. The report also leaves scope for referring the matter to the Vigilance and Anti-Corruption Bureau for further investigation.
Details of the foreign remittances contained in the banking records could also come under the scrutiny of central agencies, including the Enforcement Directorate or the Central Bureau of Investigation, depending on the findings.
Meanwhile, the SIT, formed by the Home Department, has registered a preliminary investigation into the alleged fraud committed in the name of bringing Messi to Kerala.
The preliminary investigation has been registered at the Kalamassery police station by a special team headed by ADGP P Vijayan.
The move follows a government directive to examine the various transactions and developments associated with the Messi visit that did not come to be.
The SIT has registered the preliminary probe primarily to facilitate the collection of additional documents and the recording of statements as part of the investigation. The exercise is expected to provide the legal framework for obtaining further records and examining those involved in the transactions.
(With inputs from Dileep V Kumar.)
