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Monday , 20 November 2017
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SRK summoned by ED for FEMA Violation

Enforcement Directorate has issued notices to Shah Rukh Khan and few others in connection with a Foreign Exchange Management Act (FEMA)case for alleged loss of Rs 73.6 crore foreign exchange related to the Indian Premiere League T-20 cricket league, officials said. This is a follow up afTer the central probe agency has issued notices to SRK, his wife Gauri Khan, Actress Juhi Chawla, Knight Riders Sports Pvt Ltd which owns KKR in March this year.

The actor has been asked to be present before the adjudicating authority of the case here on August 23 for the hearing before the Special Director ranked officer of the agency.

The notice has been issued for the sale of some shares of KRSPL to a Mauritius-based firm at a cost lower than their ‘actual value’, resulting in loss of foreign exchange to the extent of Rs 73.6 crore.

“In 2008 Red Chillies Enterprises Private Limited formed a special purpose vehicle namely M/s Knight Riders Sports Ltd for the purpose of acquiring IPL franchise rights of the cricket team named Kolkata Knight Riders.

“Initially, the entire share holding of Ms Kolkata Knight Riders Private Limited was with Red Chillies Enterprises and Gauri. After the success of IPL, about two crore additional shares were issued by KRSPL out of which 50 lakh shares were issued to The Sea Island Investment Ltd (TSIIL), Mauritius and 40 lakh shares were issued to Chawla.

“These shares were allotted at a par value of Rs 10 whereas the actual value of these shares was much higher,”  “Thus, foreign based company TSIIL was issued 90 lakh shares at par value while the actual cost of share at the time of issue/sale was ranging between Rs 86-Rs 99 per share. This has resulted in loss of foreign exchange to the extent of Rs 73.6 crore,” the agency said.

Gauri is a director of KRSPL, Khan and Chawla are the owners of the IPL team KKR. 

 

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