Kochi, 10 September (H.S.):

A Special Investigation Team (SIT) examining alleged irregularities surrounding the proposed Kerala visit of Argentina’s national football team and Lionel Messi has flagged suspected tax evasion of ₹25.78 crore by Reporter Broadcasting Company Private Limited (RBC).

The findings form part of an inquiry report submitted on September 7 to the Commissioner of the State Goods and Services Tax Department. The SIT, headed by ADGP P. Vijayan, has recommended a multi-agency investigation into the company’s transactions, loans, bank accounts and expenditure claims.

Of the alleged tax liability, ₹22.68 crore relates to Integrated GST that the company allegedly failed to pay under the Reverse Charge Mechanism on overseas remittances to the Argentina Football Association. Investigators said RBC transferred $14.5 million, equivalent to ₹126.04 crore, through the association’s collection agent, Tour Prod Enter LLC.

Five other remittances totalling ₹1.90 crore were allegedly made to foreign legal counsel without payment of ₹34.15 lakh in reverse-charge IGST. The report also questioned input tax credit claims of ₹2.75 crore, including credits linked to stadium renovation, works-contract services and football club membership fees.

The SIT said credits across RBC’s bank accounts totalled ₹549.22 crore. After excluding ₹212.75 crore received from non-banking financial companies, ₹336.47 crore remained, against ₹102.06 crore declared in GST returns. It treated the unreconciled ₹234.31 crore as suspected suppressed turnover.

Investigators also traced six bank accounts allegedly not disclosed to tax authorities. Seven accounts together recorded debit and credit transactions exceeding ₹1,098.56 crore.

The report further questioned loans of nearly ₹213 crore to a company with paid-up capital of ₹10 lakh. These included ₹137.75 crore from Sree Gokulam Chit and Finance and ₹75 crore from Hinduja Leyland Finance. It said the loans were not registered as charges with the Registrar of Companies and sought further scrutiny of their terms and security arrangements.

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Hindusthan Samachar / Arun Lakshman