Lionel Messi’s proposed Kerala visit has come under renewed scrutiny after a state government report flagged alleged financial irregularities, FEMA concerns, and the possibility of money laundering. The report examined the proposed Argentina football event, including a reported $15 million foreign remittance, a ₹128 crore gap between projected costs and expected income, and the appointment of a private sponsor. It also questioned the transparency of commercial arrangements and decision-making involving officials. The Kerala government is considering the report’s recommendations and possible further investigation.
Lionel Messi Kerala Visit Back in Focus Over Money Laundering and FEMA Concerns
Lionel Messi and Argentina’s football team’s proposed visit to Kerala is under renewed scrutiny after a state report flagged financial irregularities, FEMA concerns and possible money laundering.
Lionel Messi Kerala visit back in spotlight after report raised possible money-laundering concerns, alleged violations of Foreign Exchange Management Act, central probe recommended
The report submitted by special secretary (sports) N Prasanth to Chief Minister V D Satheesan has prompted Kerala's government to consider further investigation into the stalled visit.
A source in the Chief Minister’s Office said the government was studying the recommendations and may place the report before the cabinet or consider a special investigation team soon.
The report said that a private company was allowed foreign remittance of $15 million on the basis of a letter sent by a state government to the Center, a senior government official said.
The report raised the possibility of money laundering, but the official said it recommended looking at financial arrangements surrounding the proposed appearance of Argentina’s 2022 World Cup-winning squad.
Messi Kerala Visit Faces Fresh Financial Scrutiny
The report characterized the proposed Messi event as a private program masquerading as a government-backed international event, which allegedly offered commercial advantages to sponsor Reporter Broadcasting Company, or RBC.
The report highlighted a Rs 128 crore gap between the projected cost of Rs 210 crore and expected income of Rs 82 crore, making the financial structure a critical issue.
The report also examined former sports minister V Abdurahiman and his successor O J Janeesh, with major communications reportedly passing through the offices of the ministers.
Janeesh said the reported financial discrepancy was a serious concern and the constitutional position of a minister and the role of a sponsor cannot automatically be treated as equivalent.
Janeesh said the sports department had done its best under the circumstances and the report showed officials had little or no say in key decisions surrounding the event.
The report alleged RBC was appointed by the then government without an open selection process, valuation of commercial rights, verification of financial capacity or sufficient scrutiny of its sources of funding.
It further said that officials in the sports department had little influence and major decisions were allegedly taken by the then minister and private secretary through written notes or orders.
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A Jayathilak Role Also Questioned in Kerala Report
The report had also censured retired bureaucrat A Jayathilak, who was Kerala chief secretary at the time, for alleged non-compliance with state rules on the issue.
Retirement would not relieve one from liability for any alleged misconduct committed during public service, and Jayathilak’s role was one of the issues that needed to be examined more closely, the report said.
Abdurahiman dismissed the findings, saying that the agreement for the proposed match was between the Argentine Football Association or AFA and the sponsor.
He said the agreement did not entail financial liability for the Kerala government and the initiative was taken after approvals from the sports and finance ministries.
The sponsor had received approval from the Reserve Bank of India to transfer the payment to AFA through a public sector bank, Abdurahiman said, denying claims that officials were unaware.
He also said that the State Government had invited Argentina for a friendly and the AFA had made public the proposed visit to Kerala.
Two institutions had shown initial interest in sponsoring the match, but after the first failed to meet conditions, RBC showed interest and became the sponsor, said Abdurahiman.
But the report said that no final agreement had been received from the AFA, FIFA or the All India Football Federation before the proposed event went ahead.
It also pointed out that the Center had received a letter from the Kerala government that the Argentina squad was going to visit Kerala. However, several procedural requirements were yet to be sorted out.
These requirements included clearances from finance and law departments, cabinet approval, a proper detailed project report and a no-objection certificate from the Center, the findings said.
During the arrangements, departmental officials had to work on written notes or orders issued by the then minister or his private secretary, the report said.
Its recommendations include an inquiry by a Vigilance or special investigation team into alleged violations of rules and of foreign remittances and possible anti-money-laundering concerns by central agencies.
The ED was specifically recommended for probing foreign-exchange and anti-money-laundering aspects. The government is now considering the next procedural steps on the report.
In the Sprouts News episode, there could be questions about approvals, sponsorship arrangements, accountability, and financial oversight before final conclusions are reached for major sports games with international payments.
The proposed visit of Messi has thus gone from being a high-profile sporting plan to being subject to administrative and financial scrutiny, with further action pending government decisions and investigation results.
