A special investigation team has uncovered a ₹25.78 crore tax evasion scheme allegedly involving Reporter Broadcasting Company Private Limited (RBC), according to official findings released in Thiruvananthapuram. Investigators report that the company failed to remit required taxes, while officials allegedly delayed taking action on purpose.
Tax Omissions on Foreign Sponsorships and Fees
According to the special investigation team, the company sent ₹126.04 crore for a sponsorship linked to the Argentina Football Association through their collection agent. RBC allegedly failed to pay the required ₹22.69 crore in Integrated Goods and Services Tax (IGST) under the reverse charge mechanism. Investigators also found that the firm evaded ₹34.15 million in taxes on ₹1.90 crore sent toward various foreign legal and arbitration fees.
Disputed Stadium Renovation Costs and Input Tax Credits
The investigation revealed that the broadcaster unlawfully claimed ₹2.75 crore in input tax credits by violating rules tied to Jawaharlal Nehru Stadium renovation work and club membership fees. While Reporter Broadcasting Company asserted it spent ₹70 crore on the Kaloor stadium upgrades, the Greater Cochin Development Authority (GCDA) engineering division recorded the actual value at just ₹8.42 crore. Documents submitted by RBC itself listed the renovation cost at ₹14.5 crore.
Undisclosed Bank Accounts and Unaccounted Funds
Investigators discovered that while the company disclosed only a single account to the GST department, it actually maintained six additional accounts. Total transactions through banks over the past two years reached ₹1,098.56 crore, which includes a dollar account used for receiving foreign advertising revenue. Out of ₹549.22 crore credited across these bank accounts, subtracting loan amounts totaling ₹212.75 crore leaves ₹336.47 crore. Of that remaining sum, the company disclosed only ₹102.06 crore in its GST returns, leaving ₹234.31 crore entirely unaccounted for.
The findings also note that on October 8, 2025, an intelligence deputy commissioner issued verbal instructions that obstructed the investigation, causing unnecessary delays in the probe.
Frequently Asked Questions
What is the total tax evasion amount uncovered by the special investigation team?
The special investigation team found that Reporter Broadcasting Company evaded ₹25.78 crore in taxes.
How much IGST was left unpaid regarding the sponsorship tied to the Argentina Football Association?
The company allegedly failed to pay ₹22.69 crore in IGST on a sum of ₹126.04 crore sent for the sponsorship via a collection agent.
How many undisclosed bank accounts did the company maintain according to the investigators?
Investigators discovered that the company maintained six additional bank accounts beyond the single account it disclosed to the GST department.
What financial or regulatory steps do you think authorities should take next when discrepancies emerge between declared tax returns and verified banking transactions?
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