21 July,2017 01:11 PM IST | Mumbai | Suraj Ojha
The allegation is that Red Chillies-owned Knight Riders Sports' shares were sold to a Mauritius firm for much lower than the 'actual value'
Shah Rukh Khan had faced the ED for the first time in 2011 in the case. FILE PIC
The Enforcement Directorate (ED) has issued a "Personal Hearing Notice" to actor Shah Rukh Khan in the KKR case, asking him to be present on August 23.
According to top ED officers, the notice has been issued over the sale of shares of Knight Riders Sports Pvt Ltd (KRSPL) to a Mauritius firm at a cost lower than their "actual value", resulting in a loss of foreign exchange to the tune of Rs 73.6 crore.
The case, dating back to 2008-09, pertains to the share sale of KRSPL, which is owned by Khan's Red Chillies along with Juhi Chawla and her husband Jay Mehta. And the Mauritius-based company, Sea Island Investments, to which the shares were sold is owned by Mehta.
ED is probing allegations that the sold shares were undervalued by nine times. Khan had faced the ED for the first time in 2011, when he was questioned about the alleged foreign exchange violation.
The ED has questioned the actor and others in the case multiple times and also recorded Khan's statement under the Foreign Exchange Management Act (FEMA) provisions.
As per 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 (Securities and Exchange Board of India) 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.
Rs 73.6 cr The loss in forex incurred
