Kochi: The Enforcement Directorate has begun an investigation under the Foreign Exchange Management Act into the alleged remittance of Rs 126 crore abroad for the proposed visit of football star Lionel Messi and the Argentina national team to Kerala.
The probe relates to the ambitious project announced during the previous Pinarayi Vijayan government, which had generated widespread excitement among football fans but never materialised.
ED officials are examining whether foreign-exchange rules were violated in the transfer of funds connected with the proposed event to overseas sports-management firms. The agency is seeking to establish the source of the money, the route through which it was sent and the foreign entities that received the payments.
As part of the preliminary inquiry, the ED has collected banking records and copies of agreements linked to Reporter Broadcasting Company, which was associated with the promotion of the proposed event.
The agency has also sought documents from the GST Department and the Sports Department that was in office at the time. It has initiated procedures to obtain additional records from the Kerala government.
Investigators are examining the financial structure of the project, including contributions allegedly made by private sponsors and corporate organisations. The role of financial agencies outside Kerala that are said to have provided funds to Reporter Broadcasting Company is also under scrutiny.
The FEMA inquiry follows allegations that payments were made to foreign companies without obtaining mandatory regulatory approvals. The ED is examining whether the remittances complied with Reserve Bank of India norms governing transfers of foreign exchange outside the country.
The agency is also looking into allegations involving possible hawala transactions, money laundering and the use of shell companies. However, these claims are part of an initial investigation and have not been established.
Meanwhile, the Kerala government is set to order a Vigilance inquiry into the alleged financial irregularities surrounding the project. The inquiry is expected to examine the role of Reporter TV and government officials associated with the proposed event.
The project had been projected as a major sporting initiative for Kerala, with plans to bring Messi and the Argentina team to the state. But the visit failed to take place, and the financial dealings related to the proposal have now come under the scanner of multiple investigating agencies.
(Inputs from IANS)