Messi never came; ₹126 crore went abroad: ED registers FEMA case

Thiruvananthapuram: The financial probe into the proposed Lionel Messi and Argentina football team event in Kerala has intensified, with the Enforcement Directorate registering a FEMA case against Reporter Broadcasting Company over alleged foreign remittances of around ₹126 crore.

The financial controversy surrounding the proposed Lionel Messi and Argentina football team event in Kerala has escalated, with the Enforcement Directorate (ED) registering a case under the Foreign Exchange Management Act (FEMA) against Reporter Broadcasting Company (RBC), according to reports.

The ED's action follows information about the transfer of crores of rupees to foreign accounts in connection with arrangements linked to the proposed event. The amount under scrutiny has been reported at around ₹126 crore.

ED examines ₹126 crore foreign transfers

The agency has begun a detailed investigation after finding what it considers a prima facie violation of foreign exchange regulations.

Investigators have reportedly collected contract documents and records relating to the financial transactions and remittances. Records obtained by the authorities indicate that the money was transferred abroad through the State Bank of India (SBI).

The ED's investigation is expected to establish the nature of the transactions, the parties involved and the purpose for which the funds were transferred.

The State GST Department is also examining the foreign remittance.

The department had earlier issued a communication to the Reporter channel seeking around ₹22 crore in tax-related payments, according to the report.

GST authorities are also examining whether the account of Reporter Broadcasting Company was used as an intermediary account and whether the funds were subsequently transferred to two other foreign financial institutions.

Could the case lead to a PMLA probe?

The ED is also examining whether the matter could eventually attract provisions of the Prevention of Money Laundering Act (PMLA).

However, such a development would depend on the registration of an underlying criminal case by the state Vigilance or another investigative agency, according to the information provided.

The possibility of a separate investigation has also raised questions over the alleged use of public funds in connection with a foreign trip undertaken by former Kerala Sports Minister V. Abdurahiman.

Questions over public money and foreign trip

There is reportedly a debate within the state government over whether the Vigilance department can register a case under the Prevention of Corruption Act concerning expenditure from the public exchequer on the former minister's foreign trip.

The matter could have further legal and political implications if a separate criminal case is registered, as an underlying offence may be relevant to any subsequent PMLA investigation.

For now, the ED's registered case is under FEMA, with investigators examining the reported ₹126 crore in foreign transfers and associated contracts and financial records.

The parallel GST investigation and any potential Vigilance case could determine whether the financial probe expands further.

The allegations and financial transactions remain subject to investigation, and registration of a case does not by itself establish wrongdoing.