Kochi: The Kerala Police Special Investigation Team (SIT) on Wednesday conducted searches at five locations in the state as part of the probe into the failed attempt to bring football star Lionel Messi and the Argentina team to Kerala.

The searches, carried out under court warrants, covered four locations in Ernakulam, including the office of Reporter Broadcasting Company (RBC) and the residences of the Augustine brothers. Investigators also searched the brothers' ancestral property in Wayanad.

The searches began in the early hours of Wednesday and were aimed at locating documents and other evidence linked to the alleged sponsorship fraud.

The investigation relates to allegations that money was collected and financial transactions were carried out in connection with the proposed visit of Messi and the Argentina football team to Kerala.

Probe focuses on sponsorship and financial dealings

The SIT was constituted during to investigate allegations surrounding the financial transactions and arrangements made for the proposed international football event. The move came after UDF government came to power. 

Investigators are examining how RBC was selected as the sponsor during the previous LDF government and whether rules were violated in the process. The probe is also looking into the source and movement of funds, agreements signed in connection with the event and official foreign trips reportedly undertaken as part of efforts to bring the Argentina team to Kochi.

Officials are also reviewing government orders and other documents relating to the handover of the Kochi stadium for the proposed event.

According to a report prepared by the Sports Department's special secretary, there were serious lapses in awarding the sponsorship of such a major international event to a private company without inviting tenders.

The Sports Department's preliminary investigation also reportedly pointed to suspected violations in the sponsorship process. It further raised questions over whether the Argentina team had officially confirmed its visit to Kerala.

₹126 crore foreign transfer under scrutiny

A major part of the investigation concerns the transfer of funds to foreign accounts. According to the allegations cited in the probe, RBC transferred Rs 126 crore to a foreign account in connection with the proposed Messi and Argentina team visit.

Of this amount, Rs 77.16 crore was reportedly transferred in June 2025, while the remaining amount was sent in November.

The Enforcement Directorate is separately investigating the alleged overseas transfer and possible violations of the Foreign Exchange Management Act (FEMA).

Federal investigators are examining payments made to foreign sports management companies, along with bank accounts, GST records and documents held by the state Sports Department. The role of external corporate entities and financial agencies that reportedly provided funds to RBC is also being examined.

The state investigation is also looking into the source of the money that reached the sponsor company's accounts. Investigators are examining the value of land reportedly offered as security and an alleged sharp increase in its value within a year.

GST and money-laundering allegations examined

The Kerala Sports Department and the state GST Department had earlier conducted inquiries into the financial arrangements linked to the event.

The Sports Department's investigation reportedly raised allegations of money laundering and tax evasion and pointed to serious violations in the selection of the sponsor. These remain allegations under investigation and have not been established as facts by a court.

Reports based on the department's findings have also raised questions over whether some GST officials delayed action on suspected tax violations and whether the sponsor received assistance.

The latest SIT searches mark a significant investigative step after the team was formed under the leadership of ADGP P. Vijayan to examine the alleged financial irregularities and fraud linked to the proposed Messi event.