Keralam likely to form SIT to probe financial irregularities linked to Messi’s visit

Thiruvananthapuram: The Keralam government is likely to constitute a special investigation team (SIT) to conduct a detailed inquiry into alleged financial irregularities surrounding football legend Lionel Messi’s proposed but ultimately unsuccessful visit to the state. The decision is expected to be taken at the next Cabinet meeting.

An SIT constituted by the GST Department completed its preliminary investigation earlier this week and submitted its findings to the GST Commissioner. According to sources, the inquiry identified irregularities in the movement of funds into and out of the sponsor’s bank accounts. It also raised questions about the source of around ₹200 crore received by the sponsor from two financial institutions, The New Indian Express reported.

The GST Department had earlier found that an IGST liability of approximately ₹22.68 crore remained unpaid. The private broadcasting company that sponsored the proposed event had reportedly transferred ₹126 crore to an overseas account as part of its unsuccessful effort to bring Messi to Kerala.

Under the applicable tax rules, payments made to a foreign entity are treated as an inter-State supply and attract IGST at 18%.

Separately, the Sports Department’s preliminary inquiry identified several other alleged irregularities. Among the key concerns was the selection of the sponsor without inviting bids, as well as the state government making commitments regarding the event before receiving confirmation that it would actually take place.

There were also allegations that the sponsor derived financial and other benefits by using the state government’s endorsement of the proposed Messi event for promotional purposes.