KOCHI: The Special Investigation Team (SIT) probing alleged financial irregularities surrounding the proposed Lionel Messi-Argentina football event in Kerala conducted searches at five locations in Kochi and Wayanad early on Wednesday.
The searches, led by ADGP P Vijayan, began around 6 am following a court order, with a team reaching the Reporter Broadcasting Company (RBC) office at Kalamassery. The residences of the Augustine brothers, who head the media company, in Kochi and Wayanad were among the other locations searched, police sources said.
The action came days after the SIT registered its first FIR in the case, which concerns alleged financial irregularities in transactions connected with the proposed visit of the Argentina national football team and Messi to Kerala.
Reporter Broadcasting Company criticised the searches and alleged that phones belonging to its staff were seized during the operation. Senior police officers dismissed allegations that the search team had attempted to stop journalists from performing their duties at the office. They said the police action was carried out in accordance with the court order.
The SIT has also flagged an alleged tax liability of Rs 25.78 crore against RBC. In a detailed inquiry report submitted to the Commissioner of the State Goods and Services Tax Department on September 7, the team said the company had allegedly failed to pay IGST under the Reverse Charge Mechanism on certain overseas transactions.
According to the report, the largest component — Rs 22.68 crore — relates to an alleged RCM IGST liability on payments made to the Argentina Football Association (AFA). The SIT said RBC had transferred around Rs 126.04 crore to the AFA through its collection agent, Tour Prod Enter LLC.
The inquiry also identified five foreign payments totalling about Rs 1.90 crore to overseas legal counsel. The SIT has estimated an additional RCM IGST liability of Rs 34.15 lakh on these transactions.
Beyond the tax issue, the investigation has raised questions over several aspects of RBC's financial dealings, including loans, bank accounts allegedly not disclosed during the inquiry and expenditure claims. The SIT has recommended that various transactions be examined by the concerned agencies.
The proposed football event had been planned as a major sporting initiative in Kerala, with RBC associated with the arrangements involving the AFA. The plan subsequently ran into financial and contractual difficulties and the proposed visit did not take place.
The Sports Department had earlier flagged alleged irregularities connected with the project and forwarded its findings to the government. The Home Department subsequently ordered a detailed investigation, leading to the formation of the SIT.
Vijayan, ADGP (Law and Order), heads the SIT. Its other members are IG S Sateesh Bino, SP P Vikraman, DySP Shyju P L and DySP Mathew.
The overseas financial transactions linked to the proposed event are also under separate scrutiny by central agencies. The SIT's investigation is continuing.