THIRUVANANTHAPURAM: A preliminary investigation by Kerala’s GST Department has found evidence of alleged tax evasion linked to financial transactions by Reporter Broadcasting Company as part of its bid to bring Argentina’s national football team to the state.

The department’s Special Investigation Team (SIT) has obtained records relating to two payments totalling ₹126 crore made by the company in 2025, according to the preliminary findings.

The payments were made in two instalments, on June 12 and October 15, through the State Bank of India’s Kakkanad branch in Kochi, the findings showed.

Investigators have estimated that the transactions attracted a tax liability of about ₹22 crore during the respective months. As the amount was not paid, the company could also face 18% interest and a 25% penalty on the tax due, according to the preliminary assessment.

The Argentina team ultimately did not travel to Kerala, but investigators found that this would not automatically remove the tax liability arising from the transactions. The company could seek a refund after paying the applicable tax, while the interest and penalty would remain payable, according to the findings.

The SIT is also examining the source of the ₹126 crore transferred in connection with the proposed deal.

Investigators are seeking to establish whether the money was raised through the sale of broadcasting rights. If so, those proceeds could themselves attract tax, potentially widening the scope of the investigation.

If the funds were mobilised through other sources, the SIT could share relevant documents with the Enforcement Directorate (ED), which is already examining the transactions.

The findings are preliminary and the investigation remains ongoing.