MUMBAI: The Enforcement Directorate has summoned IPL team Kolkata Knight Riders' promoter Shah Rukh Khan in a case related to violation of Foreign Exchange Management Act (FEMA) Shah Rukh has been told to appear on August 23 to explain his position.
In March, the ED had issued a show cause notice to KKR and the team promoters, Shah Rukh Khan, his wife Gauri and actor Juhi Chawla for violating Foreign Exchange Management Act (Fema) rules.
The KKR team promoters allegedly sold their shares in the company to a Mauritius-based company at lower prices in 2009. The ED investigation concluded that it caused Rs 73.6 crore foreign exchange loss to the government.On basis of which they issued notices to Khan and others in March to start adjudication proceeding.
KKR representative explained their position to the adjudication authority after which the special director decide to call Khan for his final explanation before deciding the amount of penalty.
According to the ED case, initially, Shah Rukh and Gauri's company Red Chillies owned the entire shareholding of KKR. After the success of IPL, 50 lakh shares were issued to TSIIL and 40 lakh shares to Chawla. These shares were allotted at a par value of Rs 10, although the actual value of these shares was much higher.
Chawla subsequently sold her 40 lakh shares to her husband's company SIIL on the same rate. Thus, TSIIL got 90 lakh shares of KKR at Rs 10 a share whereas the actual cost of each share ranged between Rs 86 to Rs 99.
The ED concluded that it caused Rs 73.6 crore foreign exchange loss to the government.