11 November 2015

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ED questions Shah Rukh Khan over alleged FEMA violations

ED questions Shah Rukh Khan over alleged FEMA violations

 The Enforcement Directorate had served a notice to Shah Rukh in May this year but the actor did not appear before the agency.

Shah Rukh responded to the second summons in six months issued by the ED

The Enforcement Directorate has recorded the statement of Bollywood actor Shah Rukh Khan in a matter of alleged irregularities in the sale of shares of Knight Riders Sports Pvt Ltd (KRSPL) to a Mauritius-based company owned by Juhi Chawla's husband Jay Mehta.

The issue pertains to the summoning of the SRK regarding his share sale of Knight Riders Sports Pvt Ltd (KRSPL), which is owned by Red Chillies Entertainment Pvt Ltd, in partnership with actress Juhi Chawla and her husband Jay Mehta.

The above share transfer happens in year 2008-09 but still comedy is that ED is not able to solve this case in 7 years.

TOI reported that at the time of incorporation in 2008, Red Chillies had 9,900 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 have been between Rs 70-86. However, the shares were issued at a value of Rs 10 each.

The ED is investigating whether the shares of the team were allegedly undervalued as it could be violative of the provisions of the Foreign Exchange Management Act (FEMA).

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

Prior to that, Shah Rukh was quizzed in 2011 for allegations that KKR had received illegal money transferred from certain foreign tax havens.

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

Can you guess how many years ED will take to solve this case?
10 years, 50 years or 100 years

Reality views by sm –

Wednesday, November 11, 2015

Tags – SRK FEMA Jay Mehta