Messi visit row: Kerala Vigilance probe hinges on proof of fund misuse
The Kerala government's ongoing multi-department inquiry into the failed attempt to bring Argentine football captain Lionel Messi and his World Cup-winning team to Kochi in 2025 may lead to a Vigilance and Anti-Corruption Bureau (VACB) probe, but only if it finds evidence of government fund involvement resulting in a loss to the exchequer, official sources said.
Chief Minister V.D. Satheesan announced on Saturday that the Finance department, which he heads, has opened an investigation into suspected evasion of Goods and Services Tax (GST) on foreign remittances totalling an estimated ₹156 crore. The remittances were allegedly made by a television news broadcasting company sponsoring the proposed event to the Argentine Football Association (AFA) to secure Messi's presence in Kochi.
Government sources said that if the inquiry reveals wilful evasion of GST on taxable foreign remittances, it could constitute a non-bailable offence under the Central Goods and Services Tax (CGST) Act, 2017, punishable by up to five years in prison and a fine. The probe will also examine whether any government official aided the suspected evasion.
Mr. Satheesan noted that the previous Left Democratic Front (LDF) government's Finance department had flagged the suspected evasion and issued a notice to the sponsor. However, he said, there was, “rather inexplicably,” no further enforcement action taken at the time.
The ongoing verification will also look into possible procedural lapses by the Greater Cochin Development Authority (GCDA) in handing over the Jawaharlal Nehru Stadium in Kochi to the sponsor for renovation ahead of the anticipated visit.
According to sources, the Sports department's report has questioned the sponsoring firm's claim that it transferred ₹126 crore to the AFA as an upfront payment for the team's arrival. The payment was allegedly made without any contractual agreement involving cash transfer with the footballing body, which could be a potential offence under the Foreign Exchange Management Act (FEMA), 1999, if proved.
An official clarified that a FEMA violation need not automatically trigger an offence under the Prevention of Money Laundering Act, unless investigators can prove the contravention was linked to a criminal offence.
The Finance department's verification will also examine whether former Sports Minister V. Abdurahiman's trip to Spain at the sponsor's behest to meet AFA officials violated administrative procedure. The trip reportedly cost the State exchequer ₹13 lakh. Officials will check whether it had the Chief Minister's authorisation and the mandatory clearance from the Ministry of External Affairs.
Additionally, the inquiry may verify the legality of the previous administration's selection of the sponsor for the event. Allegations include the absence of open tendering, inadequate financial background checks, and non-compliance with necessary clearances.
The outcome of the current multi-department inquiry will determine whether a formal Vigilance case is registered. Any referral to VACB would require concrete evidence of government funds being misused and a resultant loss to the exchequer, officials emphasised.
