<img title="Gauri Khan" src="http://images.mid-day.com/images/2017/feb/1Gauri-Khan-1.jpg" alt="Gauri Khan" width="670" height="772" /> Gauri Khan
The Enforcement Directorate on Friday issued a show-cause notice to to Knight Riders Sports Pvt. Ltd (KRSPL), it's co-owners Bollywood superstar Shah Rukh Khan, his wife Gauri, actor-friend Juhi Chawla and others for alleged loss of Rs 73.6 crore foreign exchange in a FEMA case.
Knight&nbsp;Riders Sports Private Limited (KRSPL) owns the Indian&nbsp;Premier League (IPL) team of Kolkata Knight Riders (KKR).
The notice has been issued for the sale of some shares of&nbsp;KRSPL to a Mauritius-based firm at a cost lower than their&nbsp;"actual value", resulting in loss of foreign exchange to the&nbsp;extent of Rs 73.6 crore.
The agency said the notice has been issued for "contravention of provisions of the Foreign Exchange&nbsp;Management (Transfer or Issue of Security by a Person Resident&nbsp;Outside India) Regulations, 2000 made under the Foreign&nbsp;Exchange Management Act".
While Gauri is a Director of KRSPL, Khan and Chawla are&nbsp;the owners of the IPL team KKR.
The case pertains to 2008-09 when the ED first began investigation against the IPL franchise and its owners.&nbsp;Khan and others have been questioned by the ED multiple&nbsp;times in this case and the actor's statement was also recorded&nbsp;under FEMA provisions.
A show-cause notice under FEMA laws is issued when the&nbsp;investigation gets completed.&nbsp;
Khan's company Red Chillies Enterprises Private Limited (RCEPL), the agency said, is a wholly-owned subsidiary of Red&nbsp;Chillies International Limited based overseas in Burmuda and&nbsp;is co-owned by Gauri.
<img title="Shah Rukh Khan and Juhi Chawla " src="http://images.mid-day.com/images/2017/mar/srk-juhi.jpg" alt="Shah Rukh Khan and Juhi Chawla " /> Shah Rukh Khan and Juhi Chawla&nbsp;
"In 2008 Red Chillies Enterprises Private Limited formed a special purpose vehicle namely M/s Knight Riders Sports Ltd&nbsp;for the purpose of acquiring IPL franchise rights of the cricket team named Kolkata Knight Riders.&nbsp;
"Initially, the entire share holding of Ms Kolkata Knight&nbsp;Riders Private Limited was with Red Chillies Enterprises and&nbsp;Gauri. After the success of IPL, about two crore additional&nbsp;shares were issued by KRSPL out of which 50 lakh shares were&nbsp;issued to The Sea Island Investment Ltd (TSIIL), Mauritius and&nbsp;40 lakh shares were issued to Chawla. These shares were allotted at a par value of Rs 10 whereas the actual value of these shares was much higher," it said.
The ED said its investigation showed that Chawla subsequently sold her 40 lakh shares to TSIIL, Mauritius at&nbsp;the par value of Rs 10 only.&nbsp;
"Thus, foreign based company TSIIL was issued 90 lakh shares at par value while the actual cost of share at the time&nbsp;of issue/sale was ranging between Rs 86-Rs 99 per share. This&nbsp;has resulted in loss of foreign exchange to the extent of Rs&nbsp;73.6 crore," the agency said.&nbsp;
<img title="KKR captain Gautam Gambhir" src="http://images.mid-day.com/images/2016/may/08-Gautam-Gambhir.jpg" alt="KKR captain Gautam Gambhir" width="670" height="447" />KKR captain Gautam Gambhir
The agency has given 15 days' time to all the parties to reply to the notice after which the adjudication proceedings&nbsp;will begin in this case.
(With agency inputs)

Enforcement Directorate issues showcause notice to IPL franchise Kolkata Knight Riders Sports' co-owners Shah Rukh Khan, his wife Gauri Khan and Juhi Chawla and others for FEMA violation

ED issues notice to KKR co-owners SRK, Gauri Khan and Juhi Chawla

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Enforcement Directorate issues showcause notice to IPL franchise Kolkata Knight Riders Sports' co-owners Shah Rukh Khan, his wife Gauri Khan and Juhi Chawla and others for FEMA violation

ED issues notice to KKR co-owners SRK, Gauri Khan and Juhi Chawla

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Home / Sports / Cricket / Article / ED issues notice to KKR co-owners SRK, Gauri Khan and Juhi Chawla

ED issues notice to KKR co-owners SRK, Gauri Khan and Juhi Chawla

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