Thiruvananthapuram: A preliminary investigation by the GST department’s Special Investigation Team (SIT) has found evidence of tax evasion in financial transactions made by Reporter Broadcasting Company in connection with its bid to bring the Argentina football team to Kerala.

The SIT has obtained records of two payments made by the company from the State Bank of India’s Kakkanad branch in Kochi and the Reserve Bank of India. The company transferred a total of ₹126 crore in two instalments, on June 12 and October 15, 2025.

According to the preliminary findings, the company was liable to pay around ₹22 crore in service tax on the transactions during the respective months. Since the tax was not paid, it would also have to pay 18% interest and a 25% penalty on the amount due.

The fact that the Argentina team did not eventually come to Kerala does not exempt the company from its tax liability. It can, however, seek a refund after paying the tax, though the interest and penalty would still have to be paid.

Meanwhile, the SIT is tracing the source of the ₹126 crore transferred as part of the deal. If the money was raised through the sale of broadcast rights, the proceeds could also attract service tax, potentially pointing to further tax evasion.

If the funds were mobilised through other means, the SIT may share the relevant documents with the Enforcement Directorate (ED), which has already begun a probe into the transactions.

Political pressure to ease probe
Officials had moved to examine the alleged tax evasion during the previous LDF government’s tenure itself but backed off, reportedly following high-level intervention. A relative of a senior CPI(M) leader was also part of the team that did not pursue further action in the case at the time.

The new SIT is also facing political pressure, with some leaders from both the ruling and Opposition camps calling for the team to be replaced before it has even completed its preliminary investigation.