Chief Minister V D Satheesan on Thursday confirmed a GST fraud in the deal between a private media company and the Argentina Football Association (AFA) to bring the former world champions to Kerala.

Speaking to reporters in Thiruvananthapuram, Satheesan said the previous LDF government had issued a GST notice to Reporter Broadcasting Company in connection with the proposed visit of the Argentina team to Kerala. The company had earlier claimed that ₹126 crore had been transferred abroad to facilitate the team's visit. However, a GST intelligence officer in Kanhangad subsequently found that the applicable tax had not been paid, Satheesan said.

According to the Chief Minister, a preliminary assessment indicated irregularities in the deal.

"We have collected a preliminary report regarding this. There has been serious mismanagement. First, there is GST fraud. Second, the fraud was identified during the previous government's tenure and a notice was issued. But for the next seven months, further action on this was frozen," he said.

Satheesan said the Finance Department would investigate the deal and determine whether the government had suffered any financial loss. If any loss was established, steps would be taken to recover the amount, he said.

The proposed probe would also examine whether there were any violations of the Foreign Contribution Regulation Act (FCRA), the source of the funds transferred for the deal and the role of the state government, including whether its interests were adequately protected, Satheesan said.

He also said that the Sports Department had submitted a report to him regarding irregularities in the deal to bring Lionel Messi and the Argentina team to Kerala.

"The matter is under the consideration of the government. The government will study it and take appropriate action," Satheesan said.

Responding to queries on the report on the fraud coming soon after his visit to the Malayala Manorama headquarters in Kottayam, Satheesan dismissed such allegations. "Is this the first time I am going to Manorama? I have gone to Mathrubhumi before that. The news did not appear only in Manorama, but in all the media," he said.

Satheesan said allegations were being spread that he was planning to shut down a media channel. There was no such move, he said, adding that he had just received the report, which the government would study first. "I have just received the report. But even before that, it is being said that I'm going to shut down the channel," he said.