Another special probe into Argentina team deal as financial questions mount
Kerala’s government is ordering a probe into financial irregularities surrounding a controversial bid to bring Argentina’s football team to the state, investigating fund transfers and possible black money.
Kerala’s government is ordering a probe into financial irregularities surrounding a controversial bid to bring Argentina’s football team to the state, investigating fund transfers and possible black money.
Kerala’s government is ordering a probe into financial irregularities surrounding a controversial bid to bring Argentina’s football team to the state, investigating fund transfers and possible black money.
Thiruvananthapuram: The Kerala government has moved to order a Vigilance probe into alleged financial irregularities and procedural lapses in the controversial bid to bring the Argentina football team to the state.
The Chief Minister has recommended a Vigilance special investigation team (SIT) probe into the financial transactions linked to the deal and unauthorised interventions at the government level. An inquiry report submitted by the Sports Department, along with the Chief Minister’s recommendations, has been forwarded to Home Minister Ramesh Chennithala. The recommendations also call for investigations into foreign fund transfers and possible black money transactions to be handed over to central agencies. The Home Minister will decide on the constitution of the SIT after examining the file.
The recommendation comes amid a separate probe by a special GST investigation team into allegations that Reporter Broadcasting Company, the sponsor of the Argentina deal, evaded tax amounting to ₹22.68 crore. With this probe already underway, the latest move has paved the way for yet another special investigation into the deal.
The government is also considering entrusting the Crime Branch’s Economic Offences Wing with examining the source of the $15 million (around ₹126 crore at the then prevailing exchange rate) claimed to have been remitted abroad by the sponsor, besides tracing the details of the fund transfer.
₹207 crore transactions raise fresh red flags
Meanwhile, the GST department has flagged another set of transactions involving around ₹207 crore received by the sponsor from two finance companies in connection with the proposed visit of the Argentina football team to Kerala.
According to the department, the transactions raise questions over the source and movement of the funds. The money was transferred to the sponsor’s account around the same period in which ₹126 crore was reportedly remitted to the Argentine Football Association. Of the amount received, ₹133.64 crore came from one finance company and ₹73.23 crore from another. The funds were received in May, June, September, October and November last year.
A GST department report said the money was first deposited into an intermediary bank account before being transferred to the sponsor’s account. The department suspects that the account was used solely to route the funds. It also found that no tax or GST on processing charges was levied on the transactions.
Citing the opaque nature of the fund transfers, the department has recommended a central agency probe and a detailed examination of possible violations of the Foreign Exchange Management Act (FEMA) and other laws.