Messi Kerala project under ED scrutiny over Rs 126 crore overseas payments

The Enforcement Directorate (ED) has initiated an investigation under the Foreign Exchange Management Act into the alleged transfer of Rs 126 crore overseas in connection with the visit of football star Lionel Messi and the Argentina national team to Kerala that was scheduled for December 2025 but got eventually cancelled.

The agency is examining whether foreign exchange rules were breached when funds associated with the project were remitted to sports management companies abroad. The event had been announced during the previous Pinarayi Vijayan government but did not materialise.

The investigation is at a preliminary stage and is focused on the manner in which the money was transferred, its source and the overseas entities that received it.

The ED has collected bank records and copies of agreements reportedly signed by Reporter Broadcasting Company, which played a prominent role in promoting the proposed event.

Documents have also been sought from the GST Department and the then sports department. The agency has begun the process of obtaining additional records related to the project from the state government.

Investigators are examining the financial arrangements involving private sponsors and corporate entities that allegedly contributed money towards the event. The role of financial organisations outside Kerala that reportedly provided funds to Reporter Broadcasting Company is also under scrutiny.

The FEMA investigation follows allegations that payments were remitted to foreign entities without obtaining the necessary regulatory approvals. The ED is assessing whether the transactions complied with Reserve Bank of India rules governing overseas remittances.

The agency is also examining allegations involving hawala transfers, money laundering and the possible use of shell companies. These allegations have not been established and remain subject to investigation.

The Kerala government has meanwhile decided to initiate a Vigilance inquiry into the alleged financial irregularities. The state Vigilance department is expected to examine the transactions as well as the roles of Reporter TV and officials associated with the project.

The proposed visit by Messi and the Argentina team had been promoted as a landmark event for Kerala and generated widespread excitement in a state known for its passionate football following.

However, the planned visit never took place, and the financial arrangements surrounding the project are now facing scrutiny from both central and state investigative agencies.

With IANS inputs