Shah Rukh Khan Summoned by Enforcement Directorate Over Kolkata Knight Riders' Share Sale

Updated: 27 October 2015 19:22 IST

Shah Rukh Khan has been summoned by the Enforcement Directorate for alleged forex violation regarding selling shares of Knight Riders Sports Pvt Ltd to a Mauritius-based company, owned by Juhi Chawla's husband Jay Mehta

Shah Rukh Khan Summoned by Enforcement Directorate Over Kolkata Knight Riders
Shah Rukh Khan has been summoned regarding the share sale in 2008-09. © PTI

Mumbai:

Shah Rukh Khan has been served summons by Enforcement Directorate in connection with allegedly irregular sale of shares of Knight Riders Sports Pvt Ltd (KRSPL) to a Mauritius-based company,owned by actor Juhi Chawla's husband Jay Mehta. (Read More Cricket Stories Here)

The case pertains to 2008-09, regarding the share sale of KRSPL, owned by Khan's Red Chillies along with Chawla and her husband.

"This is the third time that summons have been sent to Khan and we are expecting him anytime soon as his presence is needed for some information that is in his exclusive knowledge," said ED sources on Tuesday.

The summons were sent to Khan earlier this month.

ED is probing allegations that shares sold to Chawla's husband Jay Mehta-owned Sea Island Investments were undervalued by eight to nine times.

Khan had faced ED once in 2011 when he was questioned about alleged foreign exchange violation of around Rs 100 crore.

The agency has already recorded the statements of Chawla and Mehta.

At the time of incorporation in 2008, Red Chillies had 9900 shares of KRSPL. The valuation report, made by ED's external agency last year, said that when the equity shares of KRSPL were issued to Sea Island Investments, the fair value per equity share of KRSPL should be between Rs 70-86. However, the shares were issued at a value Rs 10 each.

According to Foreign Exchange Management Act (FEMA), the price of shares issued to persons residing outside India should not be lower than the price worked out under the guidelines set by stock market regulator SEBI, in case of a listed company or on the basis of fair valuation of shares by a chartered accountant as per guidelines of the erstwhile Controller of Capital Issues (CCI).

When contacted, a spokesman of the actor said "no comments."

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Topics mentioned in this article Kolkata Knight Riders IPL 8 Cricket
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