Messi visit row in Kerala: possible Vigilance inquiry referral hinges on confirmation of involvement of government funds and resultant loss to the exchequer

A Vigilance and Anti-Corruption Bureau (VACB) inquiry into the previous Left Democratic Front (LDF) government’s failed bid to host the 2022 FIFA World Cup-winning Argentina football team and its iconic captain, Lionel Messi, in Kochi in Kerala in 2025 would hinge on whether the current multi-department inquiry revealed any involvement of government funds resulting in a loss to the exchequer.

Messi visit row: Kerala’s UDF govt closes in on multi-angled probe into LDF’s failed bid to host Argentina football team in Kochi

Chief Minister V.D. Satheesan had confirmed on Saturday (August 8, 2026) that the Finance department, headed by him, has opened an investigation into suspected GST levy evasion on foreign remittances, amounting to a projected ₹156 crore, purportedly made by the project’s sponsor, a television news broadcasting company, to the Argentine Football Association to secure Messi and his team’s presence in Kochi. 

Suspected tax evasion

According to government sources, wilful evasion of GST on foreign remittances liable to tax, if revealed during the inquiry, could constitute a non-bailable felony under the Central Goods and Services Tax (CGST) Act, 2017, which entails a punishment of up to five years of imprisonment and a fine. They said the Finance department’s probe would also probably examine whether any government official had aided the suspected service tax evasion. 

Notably, Mr. Satheesan had stated that the previous LDF government’s Finance department had flagged the suspected evasion and issued a notice to the sponsor. However, he said, there was, “rather inexplicably,” no further enforcement action. 

According to the government sources, the ongoing verification would also examine whether there were any procedural lapses on the part of the Greater Cochin Development Authority (GCDA) in the handing over of the Jawaharlal Nehru Stadium at Kaloor in Kochi to the sponsor for renovation ahead of the Argentine football team’s “anticipated” visit.

They said the Sports department report had questioned the sponsoring firm’s claim that it had transferred ₹126 crore to the Argentine Football Association (AFA) as an upfront payment for their arrival, allegedly without any contractual agreement involving cash transfer with the footballing body, a potential offence under the Foreign Exchange Management Act (FEMA), 1999, if proved. 

An official said a FEMA violation need not necessarily trigger an offence under the Prevention of Money Laundering Act, unless investigators can prove the alleged contravention was linked to a criminal offence. 

The ongoing Finance department verification, sources said, would also examine whether former Sports Minister V. Abdurahiman’s trip to Spain at the sponsor’s behest to meet AFA officials, at ₹13-lakh loss to the State exchequer, ostensibly to give Kerala’s sporting sector a boost by securing the football team’s friendly match in Kerala, violated administrative procedure such as the Chief Minister’s authorisation and mandatory clearance from the Ministry of External Affairs. 

The ongoing inquiry may also verify the legality in the previous dispensation’s selection of the sponsor for the event, allegedly without open tendering, financial background checks, and necessary clearances, officials said.