NEW DELHI: The Enforcement Directorate on Thursday issued summons to Bollywood actor Shah Rukh Khan to personally appear before it on July 23 in connection with a FEMA case pending against him.
In March, the agency issued showcause notices to Khan, his wife Gauri Khan, who is also the director of IPL franchisee Knight Riders Sports Pvt Ltd, and another film actress Juhi Chawla in connection with the case under the Foreign Exchange Management Act (FEMA).
Official sources said other accused persons in the case Gauri and Chawla will also be summoned subsequently.
“The showcause notices have been issued for contravention of provisions of Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 made under Foreign Exchange Management Act,” the ED had said in a statement after the show cause notices to the accused.
In 2008, Red Chillies Enterprises Pvt. Ltd. formed a special purpose vehicle Knight Riders Sports Ltd. for the purpose of acquiring IPL franchise rights of the Cricket Team named ‘Kolkata Knight Riders’. Initially, the entire share holding of Kolkata Knight Riders Pvt. Ltd. was with Red Chillies Enterprises and Gauri Khan. After the success of IPL, about 2 crore additional shares were issued by KRSPL out of which 50 lakh shares were issued to The Sea Island Investment Ltd. (TSIIL), Mauritius and 40 lakh shares were issued to Juhi Chawla, according to the agency.
Officials said these shares were allotted at a par value of Rs 10 whereas the actual value of these shares was much higher. Juhi Chawla subsequently sold her 40 lakhs shares to TSIIL, Mauritius at the par value of Rs. 10 only.
“Thus, foreign based company M/s. TSIIL was issued 90 lakhs shares at par value while the actual cost of share at the time of issue/ sale was ranging between Rs.86 to Rs. 99 per share. This has resulted in loss of foreign exchange to the extent of Rs.73.6 crores. Those served the notices have been given time of 15 days to make their submissions to the showcause issued,” the agency has been on record.
Red Chillies Enterprises Pvt. Ltd. (RCEPL), a wholly owned subsidiary of Red Chillies International Ltd, Bermuda, is the company owned by Shah Rukh Khan and Gauri Khan.