The raids, which took place on Wednesday, were carried out pursuant to a search warrant issued by a magistrate. The primary focus of the investigation is an alleged tax evasion amounting to ₹25.78 crore (approximately $3 million) by RBC in connection with the organization and sponsorship of a FIFA-sanctioned friendly match held at the Jawaharlal Nehru Stadium in Ernakulam. The SIT has submitted a report to the Commissioner of the State Goods and Services Tax (GST) department detailing these claims.
Police Clarify Scope of Inquiry
Additional Director General of Police (Law and Order) P. Vijayan stated that the actions constituted a preliminary inquiry based on reports received by the state government. “Our initial assessment is that a crime has taken place,” Vijayan said, confirming that a First Information Report (FIR) has been registered at the Kalamassery police station for alleged fraud carried out in the name of the Argentine football team.
Vijayan addressed concerns regarding the disruption of news operations at Reporter TV, asserting that no mobile phones were seized from journalists during the inspection. “We only asked them to keep the phones aside; they were not taken into custody,” he clarified. The police team, led by Thrikkakara Assistant Commissioner of Police Bijoy Chandran C K, examined documents, computers, and servers alleged to contain records of financial transactions related to the event.
Allegations of Financial Irregularities
The investigation centers on discrepancies in the collection and utilization of sponsorship funds. Authorities allege that large sums were collected by leveraging the significant public interest in the Argentina team’s visit, with subsequent irregularities in the payment of associated taxes. The SIT is examining whether RBC failed to remit the correct amount of GST on these transactions.
The Argentina team’s visit to Kerala was originally announced as a public partnership. V. Abdurahiman, who served as the state sports minister at the time, stated that the government was partnering with RBC to host the match at no cost to the public exchequer. The current probe seeks to determine if the financial arrangements deviated from this stated framework and resulted in systemic tax evasion.
Corporate Response and Ongoing Procedures
Reporter Broadcasting Corporation alleged that the police action disrupted its news operations. The channel claimed that the search was conducted at the news desk, an area where only journalists and technical staff typically work. The corporation has not commented on the specific financial allegations or the tax evasion claims leveled by the SIT.
The legal process is currently at the preliminary inquiry stage. While the FIR has been registered for alleged fraud, the tax evasion report remains under review by the GST department. No arrests have been reported in connection with the raids, and the Augustine brothers have not been taken into custody. The investigation will continue as authorities analyze the seized digital and documentary evidence to verify the extent of the alleged financial discrepancies.
