The Enforcement Directorate (ED) has registered a case under the Foreign Exchange Management Act (FEMA) over the alleged transfer of ₹126 crore abroad in connection with the proposed visit of football icon Lionel Messi and the Argentina national team to Kerala. The probe targets financial dealings linked to a high-profile sporting event that was announced during the tenure of the previous Pinarayi Vijayan government but never materialised.

What the ED Is Examining

The agency is investigating whether foreign exchange regulations were violated when funds connected to the project were remitted to overseas sports management companies. According to reports, the ED has collected bank records and copies of agreements reportedly entered into by Reporter Broadcasting Company, which played a central role in promoting the proposed Messi event.

The investigation is currently at a preliminary stage, with the ED focusing on the source of the ₹126 crore, how it was transferred abroad, and the identity of the foreign entities that received the money. The agency is also examining whether the transactions complied with Reserve Bank of India (RBI) regulations governing overseas remittances.

Scope of the Probe

Documents have been sought from the GST Department and the then Sports Department, and steps have been initiated to obtain records from the state government. The ED is also examining financial arrangements involving private sponsors and corporate entities that reportedly contributed funds toward the event, as well as the role of financial agencies outside Kerala that allegedly channelled money to Reporter Broadcasting Company.

Notably, the agency is also looking into allegations of possible hawala transactions, money laundering, and the use of shell companies. However, these remain allegations at the preliminary investigation stage and are yet to be established, the ED has clarified.

Vigilance Enquiry Underway

The Kerala Vigilance Department is separately set to examine the transactions and the roles of individuals involved in the project. The state government has decided to initiate a Vigilance enquiry into the alleged financial irregularities and the conduct of Reporter TV and officials associated with the event.

This adds another layer of institutional scrutiny to a project that had generated considerable excitement among football fans in Kerala before the proposed arrival of Messi and the Argentina team failed to materialise.

Background and What Comes Next

The Messi Kerala project had been positioned as a landmark moment for the state's sporting ambitions, with the previous government presenting it as a coup for Kerala's global profile. The collapse of the event and subsequent questions about the financial trail have now placed the project under multi-agency scrutiny.

With both the ED and the Kerala Vigilance Department actively pursuing records, the investigation is expected to widen as documents from government departments and private entities are analysed in the coming weeks.