Kochi, Aug 28 (IANS) The Enforcement Directorate (ED) has initiated a probe under the Foreign Exchange Management Act (FEMA) into the alleged transfer of Rs 126 crore abroad in connection with the proposed visit of football icon Lionel Messi and the Argentina team to Kerala, putting the ambitious project announced during the previous Pinarayi Vijayan government under a fresh cloud.
The ED is examining whether foreign exchange regulations were violated when funds linked to the project were transferred to overseas sports management companies.
The agency has collected documents relating to the payments, including bank records and copies of agreements reportedly entered into by Reporter Broadcasting Company, which had played a key role in promoting the proposed Messi event.
The investigation is currently at a preliminary stage, with the ED focussing on how the Rs 126 crore was transferred abroad, the source of the funds and the entities that received the money.
Documents have already been sought from the GST Department and the then Sports Department.
The ED has also initiated steps to obtain records from the state government relating to the project.
The agency is examining the financial arrangements involving private sponsors and corporate entities that reportedly contributed funds towards the event.
It is also looking into the role of financial agencies outside Kerala that allegedly provided money to Reporter Broadcasting Company.
The FEMA probe comes amid allegations that payments were made to foreign entities without the required regulatory clearances.
The ED is examining whether the transactions complied with Reserve Bank of India regulations governing overseas remittances and whether any violations occurred in the process.
The agency is also looking into allegations of possible hawala transactions, money laundering and the use of shell companies.
However, these remain allegations at the preliminary investigation stage and are yet to be established.
The Kerala Vigilance department is also set to examine the transactions and the role of those involved in the project, adding another layer to the scrutiny.
The state government has decided to initiate a Vigilance enquiry into the alleged financial irregularities and the role of Reporter TV and officials associated with the project.
The Messi project had been presented as a major boost to Kerala’s sporting ambitions, generating considerable excitement among football fans.
The proposed arrival of Messi and the Argentina team, however, never materialised, and the financial dealings surrounding the project have now become the subject of investigation.
--IANS
sg/rad
