Kochi: The Special Investigation Team (SIT) led by ADGP P Vijayan launched coordinated raids across Kerala in the early hours of Wednesday in connection with the financial fraud case linked to an initiative to bring global football icon Lionel Messi to the state.

The raids, which began on Wednesday morning following a court order, targeted five key locations, police sources said. These included the Kochi and Wayanad residences of the Augustine brothers, who head Reporter Broadcasting Company (RBC), and the media house's head office in Kalamassery. The police reached the channel office around 6 am. Reporter Broadcasting Company has condemned the raids and alleged that phones belonging to staff were seized during the raids.

The raids come shortly after the SIT registered its first FIR in the multi-crore scam in Kalamassery. The SIT, which is probing irregularities linked to the proposed visit of the Argentina national football team and Lionel Messi to Kerala, had flagged alleged tax evasion of ₹25.78 crore by Reporter Broadcasting Company Private Limited.

The findings were part of a Detailed Inquiry Report submitted to the Commissioner of the State Goods and Services Tax Department on September 7. The report also flags alleged financial irregularities involving loans, undisclosed bank accounts and inflated expenditure claims, and recommends a multi-agency probe into several aspects of the transactions.

According to the report, the SIT has quantified the total tax evasion at ₹25,78,20,675. Of this, ₹22.68 crore relates to IGST allegedly not paid under the Reverse Charge Mechanism (RCM) on foreign remittances made to the Argentina Football Association (AFA).

The SIT said RBC had remitted $1.45 crore, equivalent to ₹126.04 crore, to the AFA through its collection agent, Tour Prod Enter LLC. The SIT also unearthed five additional foreign remittances worth ₹1.90 crore made to overseas legal counsel, on which RCM IGST was allegedly not paid. It said RBC had not paid ₹34.15 lakh in RCM IGST on these transactions.

The SIT was constituted by the Home Department and is headed by Vijayan, ADGP (Law and Order). Its members are S Sateesh Bino, Inspector General of Police, Internal Security; P Vikraman, Superintendent of Police, Crime Branch, Kozhikode and Wayanad; Shyju P L, Deputy Superintendent of Police, Crime Branch, Wayanad; and Mathew, Deputy Superintendent of Police, Crime Branch, Kozhikode Range.

The Sports Department had flagged the alleged irregularities after the UDF government came to power. It subsequently forwarded a report to the Chief Minister and recommended a detailed probe by the Home Department.