‘Prima facie, GST fraud’: Kerala CM flags sponsor, financial lapses in failed Messi event plan

Kerala Chief Minister VD Satheesan has raised serious allegations, including GST fraud and lapses in the selection of a private sponsor, regarding the failed plan to bring Lionel Messi-led Argentina national team to Kerala. These allegations were reported in a preliminary inquiry submitted by the state's sports department. The CM stated that the inquiry report is currently being examined, which may warrant further investigations.

Satheesan highlighted that the finance department, under his purview, will take action to recover the state's losses in GST collection. He emphasized that "prima facie, GST fraud has taken place" and that there are serious allegations involved. According to the CM, the inquiry process was seemingly halted.

Regarding the possibility of central agencies probing potential money laundering, the CM stated that the state government would conduct the initial examination, and refer to central agencies only if necessary. He also rejected allegations by a top official from the private firm that the state government was targeting the company, stating that he has not taken any action on this matter.

The Messi-led Argentina team was to play a friendly exhibition match at Jawaharlal Nehru Stadium in Kochi, at no cost to the public exchequer. However, the event did not take place. The inquiry report criticized the selection of the private sponsor for various violations, including the absence of a formal agreement between the Argentina Football Association, the Kerala government, and the sponsor.

The report also mentioned service tax fraud on foreign remittances and the lack of a transparent tender process before the sponsor was chosen. Both the former sports minister, V Abdurahiman, and the private firm have denied the allegations mentioned in the inquiry report.