ED Summons Shahrukh Khan in IPL FEMA violation case

Superstar and owner of IPL team, Kolkata Knight Riders was summoned by the Enforcement Directorate (ED) in IPL FEMA case which for selling around five million Knight Riders Sports Pvt Ltd (KRSPL) shares at an underrate. The Enforcement Directorate (ED) on Thursday asked King Khn to appear on August 23.

ED said Khan can present his version personally or through his lawyer before the special director of the ED.

“We will hear what he has to say,” confirmed a senior ED official.

In March this year, Enforcement Directorate (ED) has issued notice to Gauri Khan, Juhi Chawla part from Shahrukh in connection with the Foreign Exchange Manage Act (Fema).

According to the ED notice, Shahrukh, Gauri and Juhi allegedly sold the shares of their company Knight Riders Sports Pvt Ltd (KRSPL) to Mauritius-based company The Sea Island Investment Ltd (TSIIL), owned by Juhi’s husband Jay Mehta, at lower prices in 2009, that caused Rs 73.6 crore foreign exchange loss to the government.

Earlier, the ED had recorded Shah Rukh's statement in the case along with others. The ED investigated the violations and money involved after examining the relevant documents on the basis of which it concluded the forex loss amount. The agency then filed a complaint against KRSPL of which Gauri is the director.

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 Juhi. These shares were allotted at a par value of Rs 10, although the actual value of these shares was much higher.

Juhi 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.