SIT Flags ₹25.78-Crore GST Evasion in Lionel Messi’s Proposed Kerala Visit: What the Probe Found

Lionel Messi Kerala Visit Row: SIT Flags ₹25.78-Crore GST Evasion

The proposed Lionel Messi visit to Kerala, which generated huge excitement among football fans, has now come under the scanner of a Special Investigation Team (SIT) over alleged financial irregularities and GST evasion.

According to reports, the SIT has flagged an alleged ₹25.78-crore GST liability involving Reporter Broadcasting Company (RBC) and has recommended recovery of the amount along with applicable interest. A case has also been registered in connection with the alleged tax irregularities.

What is the Messi Kerala event controversy?

The previous Kerala government had backed a proposal to bring the Argentina national football team, including Lionel Messi, to the state for a football match in Kochi. However, the proposed event did not materialise, with Argentina eventually playing friendly matches elsewhere.

The event was associated with private sponsorship and reportedly involved a large financial commitment. The current investigation is examining whether proper procedures were followed in granting approvals and handling the event-related finances.

Kerala Sports Minister O J Janeesh has defended the decision to launch the SIT probe, saying there were significant procedural lapses that needed examination. He questioned whether the necessary permissions had been obtained for the proposed event and whether the financial credentials of the sponsor had been adequately verified.

SIT examines sponsor and financial arrangements

One of the key questions raised by the Kerala government concerns the financial capacity of the event organiser.

Janeesh questioned how a company with a reported paid-up capital of only ₹10 lakh could become the organiser of an event claimed to involve expenditure of around ₹200 crore. He said the selection and financial background of the sponsor should have been examined before approval was granted.

The SIT's tax-related findings have now added another dimension to the controversy, with the alleged GST evasion amount running into several crores.

₹25.78 crore GST issue under scrutiny

The SIT has reportedly recommended recovery of ₹25.78 crore in GST allegedly due from Reporter Broadcasting Company, along with interest. The findings relate to financial transactions connected with the Messi-related event proposal.

The investigation is expected to establish the precise nature of the transactions, the tax liability and whether there were deliberate attempts to conceal or misrepresent taxable income.

Importantly, the allegations are part of an ongoing investigation and do not by themselves establish criminal liability against any individual or organisation.

Kerala government promises detailed probe

The state government has said the SIT investigation will bring greater clarity to the controversy. Janeesh said the government acted on a Sports Department report and that the facts should now emerge through the investigation.

The case has also attracted political attention, with opposition figures questioning aspects of the proposed event and demanding greater transparency.

For football fans, the controversy is a sharp contrast to the excitement that surrounded the possibility of seeing Messi and the Argentina team play in Kerala. For investigators, the focus is now on the financial and procedural trail behind the proposed event.

What happens next?

The SIT's findings could lead to recovery proceedings over the alleged GST dues and further investigation into the financial arrangements surrounding the event.

The probe will also examine whether required permissions were obtained, how the private sponsor was selected and whether proper financial and tax procedures were followed.

Until the investigation and any subsequent legal proceedings are completed, the allegations should be treated as claims under investigation rather than established wrongdoing.