Thiruvananthapuram. Kerala’s plan to bring Lionel Messi and the Argentina football team to Kochi for a proposed exhibition match has now come under a wider investigation. Chief Minister V.D. Satheesan on Monday directed the Home Department to constitute a Special Investigation Team (SIT) to examine alleged corruption, financial irregularities and suspected tax violations linked to the proposed event at the Jawaharlal Nehru Stadium in Kochi in 2025, during the previous Left Democratic Front (LDF) government.
According to officials, the Chief Minister wrote to Home Minister Ramesh Chennithala, drawing attention to the findings of a recently completed inquiry by the Finance Department. The inquiry examined foreign payments made by a television news broadcasting company that was identified as the sponsor of the event intended to bring Messi and the Argentina team to Kerala. The financial transactions uncovered during the inquiry have now raised questions about the entire process surrounding the proposed event.
According to the Finance Department’s findings, the sponsoring company transferred around ₹126 crore to a foreign entity through banking channels in 2025. Officials said the department assessed the tax liability arising from the transaction and the inquiry referred to a service tax liability of around €22.68 crore.
The sponsoring company, however, has challenged the tax claim on legal grounds. It has reportedly argued that since the proposed event did not take place as planned, it was not liable to pay the service tax to the State. The SIT is now expected to examine the purpose of the foreign payment, the nature of the services involved and the actual tax liability arising from the transaction.
The investigation will also examine whether the relevant departments took action in accordance with the rules after questions were raised over the tax liability.
The government approval and procurement process is another major area of concern. According to officials, inquiries by the Sports and Finance Departments identified several questions regarding the manner in which the event was approved and the sponsor was selected.
These include the alleged absence of mandatory Cabinet approval, failure to conduct a market value assessment to determine the sponsor’s financial capacity, absence of an open tendering process and failure to invite expressions of interest from other potential bidders.
The SIT is expected to examine whether established financial and administrative procedures were followed for an international sporting event of such a large scale and financial value. Investigators may also examine whether any individual or organisation was allegedly given an undue advantage during the decision-making process.
The Finance Department inquiry also reportedly raised questions about the role of GST officials. According to officials, effective action was allegedly not taken to hold the sponsoring company accountable for the suspected tax liability. The investigation will therefore examine whether the delay was merely an administrative lapse or whether there were other factors behind the failure to proceed against the company.
Questions have also been raised over the formation of a new company by the event sponsor. Officials said the company was allegedly established with limited capital before approaching the previous LDF government with the ambitious proposal to bring Messi and the Argentina team to Kerala. The proposal generated considerable excitement among football fans across the State.
Following the Chief Minister’s directive, the Vigilance and Anti-Corruption Bureau (VACB) and Crime Branch are expected to play a significant role in the investigation. If the inquiry establishes sufficient grounds to indicate a cognisable offence, the matter could lead to further criminal investigation and action.
Officials also indicated that if the investigation uncovers evidence of a criminal conspiracy, illegal movement of funds or money laundering in connection with the foreign transactions, the matter could potentially attract the attention of central agencies.
The government has also reportedly sought legal advice on whether the matter should be referred to the Registrar of Companies and the Serious Fraud Investigation Office (SFIO) for further examination.
The proposed Messi and Argentina team event had generated significant excitement among football fans in Kerala. However, the controversy has now shifted from the sporting spectacle to questions surrounding the ₹126 crore foreign payment, possible tax liability and the administrative process followed by the government. The SIT investigation is expected to determine whether the matter involved only procedural lapses or whether there were deeper financial irregularities and alleged corruption behind the deal.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
