Kerala SIT expedites GST evasion probe into Messi event; ₹126 crore remittance under scanner
The Kerala Finance Department's Special Investigation Team (SIT) has expedited its enquiry into suspected Goods and Services Tax (GST) evasion related to foreign remittances made by a private firm to host an exhibition match featuring the Argentine football team and Lionel Messi in Kochi in 2025. The event, which was touted as a major sporting spectacle, ultimately fell through, leaving a trail of legal and financial questions.
Officials said the SIT, led by GST Deputy Commissioner C Brijesh, is expected to record statements from tax enforcement officials who had initially flagged the suspected levy evasion in 2025. The investigation was ordered by Chief Minister V.D. Satheesan, and officials believe it could lay the groundwork for a broader anti-corruption probe into the high-profile venture that received active support from the previous Left Democratic Front (LDF) government.
At the core of the investigation is a wire transfer of ₹126 crore made to a foreign entity through banking channels in 2025. According to GST intelligence, this transfer automatically triggered a service tax liability of ₹22.68 crore to the State exchequer. Tax enforcers had issued multiple notices to the sponsoring firm, but these reportedly went unanswered during the previous government's tenure.
The sponsoring company, now under renewed government scrutiny, belatedly responded to the GST notices in early August. The firm has taken the legal position that it owes no service tax because the event never took place, arguing that no service was rendered.
The Kerala government is also examining whether to refer the matter to the Registrar of Companies (RoC) and the Serious Fraud Investigation Office (SFIO). Officials said the company was registered only weeks before it approached the previous government with the proposal, allegedly with minimal capital. A legal opinion based on the SIT's findings could trigger such a referral.
The multi-department enquiry is also looking into how the agreement was finalised with the sponsor. Questions are being raised about whether the previous government bypassed standard procedures, including open tendering, solicitation of expressions of interest from other bidders, clearance from the Law and Finance Departments, cabinet approval, and a proper assessment of the company's financial capacity to execute a high-value commercial event.
If the enquiry uncovers cognisable offences under the GST Act or the Prevention of Corruption Act, officials said the current United Democratic Front (UDF) government may refer the case to the Vigilance and Anti-Corruption Bureau (VACB) for further investigation. The banking records of outward remittances could also prompt action by central agencies such as the Enforcement Directorate (ED) or the Central Bureau of Investigation (CBI), depending on the evidence gathered.
The proposed exhibition match, which generated enormous hype and excitement among football fans in Kerala, was initially seen as a major cultural and sporting event. However, its collapse has intensified scrutiny of how the deal was negotiated and financed. The SIT's fast-tracked investigation aims to determine whether the public exchequer was deprived of legitimate tax revenue and whether any public officials were complicit in the alleged evasion.
As the probe progresses, legal experts point out that the case raises important questions about the accountability of state governments when facilitating private commercial events with international celebrities. The outcome of the SIT's findings could set a precedent for how such proposals are vetted in the future, ensuring transparency and fiscal prudence.