The Kerala Finance Department’s Special Investigation Team (SIT) has accelerated its probe into suspected Goods and Services Tax (GST) evasion related to foreign remittances made by a private firm to secure the presence of the Argentine football team, including Lionel Messi, for an exhibition match in Kochi in 2025.
The investigation is expected to lay the groundwork for a comprehensive anti-corruption inquiry into the high-profile plan that ultimately failed despite the previous Left Democratic Front (LDF) government’s support. According to government officials, the SIT, led by GST Deputy Commissioner C Brijesh, will record statements from tax enforcers who initially flagged suspected levy dodging in 2025.
The SIT is focusing on why the investigation stalled despite GST intelligence flagging a wire transfer of ₹126 crores to a foreign entity through banking channels in 2025, triggering a service tax obligation of ₹22.68 crore to the State exchequer. The tax enforcers had issued several notices to the firm, which went unheeded under the LDF government. The sponsoring firm has since responded to the GST notices, claiming it owes no service tax since the event never took place.
The government may refer the findings to the Registrar of Companies and the Serious Fraud Investigation Office (SFIO) based on the SIT’s findings. The ongoing multi-department probe also covers whether the LDF government wrapped up the agreement with the sponsor without open tendering, clearance from the Law and Finance Departments, cabinet concurrence, and proper market value assessment.
If the multi-department enquiry reveals cognisable offences, including those with penal consequences under the GST Act and infringement of the Prevention of Corruption Act, the UDF government may refer the findings to the Vigilance and Anti-Corruption Bureau for further investigation. The banking data on outward remittances made by the sponsor could also trigger investigations by the Enforcement Directorate (ED) or the Central Bureau of Investigation (CBI).
The Kerala government’s decision to expedite the probe comes as it weighs an anti-corruption investigation into the failed bid to bring Messi and the Argentine team to Kochi. The government is likely to scrutinize the sponsoring firm’s registration and its ability to execute the high-value commercial enterprise.
