ED questions SRK over KKR shares

Bollywood actor Shah Rukh Khan was yesterday questioned by the Enforcement Directorate (ED), over alleged irregularities in the sale of shares of the Kolkata Knight Riders — the IPL cricket team co-owned by him — said sources.

Shah Rukh Khan. Pic/PTI
Shah Rukh Khan. Pic/PTI

On Tuesday, Khan responded to the second summons in six months issued by the ED in mid-October, pertaining to the probe into the alleged undervaluation of shares of Knight Riders Sports Pvt Ltd (KRSPL).

Khan, actress Juhi Chawla and her husband Jay Mehta jointly own KRSPL, which runs the KKR team. It is alleged that five million shares of KRSPL were sold to Mehta’s Mauritius-based company, Sea Islands Investments Ltd in 2008, and were reportedly undervalued by eight to nine times.

The ED is investigating whether the shares of the team were undervalued, as it could violate the provisions of the Foreign Exchange Management Act (FEMA). The ED had served a notice to Khan in May this year, but the actor had not appeared before the agency.

Prior to that, he was quizzed in 2011 for allegations that KKR had received illegal money transferred from certain foreign tax havens. In 2011, Khan was directed to provide relevant documents, including the purchase of players, revenues, advertising details and the team’s shareholding pattern.

During Tuesday’s questioning, officials said Khan cooperated with the investigators and also provided relevant documents pertaining to the deals.

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