Mumbai: The Enforcement Directorate on Friday issued showcause notices to Bollywood superstar Shah Rukh Khan, his wife Gauri Khan and actor Juhi Chawla in connection with the 2009 Indian Premier League under the provisions of the Foreign Exchange Management Act (FEMA).
Office of the special director of the ED sent the notices to them mentioning irregularities to the tune of Rs 73.6 crore. The ED has sought a reply from them within 15 days. “The notices were issued in the name of Knight Riders Sports Pvt Ltd in which Gauri Khan is a director,” officials said. KRSPL owns the Kolkata Knight Riders IPL cricket team.
“They have been asked to join the adjudication process. We have informed them (SRK, Gauri and Juhi) of the Rs 73.6 crore loss incurred by the government in the form of foreign exchange.
Shah Rukh Khan, Gauri Khan and Juhi Chawla liable to be penalised: ED
“They are liable to be penalised thrice the amount of the irregularities conducted by them,” said a senior ED officer, requesting anonymity.
The notices were served under Rule 4(1) of Foreign Exchange Management (adjudication proceedings and appeal rules), 2000 and the special director of ED, a quasi-judicial authority, will hold a hearing. Officials added that the showcause notices had 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 the FEMA.
The ED officials had questioned Khan in 2015 in connection with the alleged irregularities. A probe conducted by the agency along with fresh auditing revealed that shares sold by KRSPL to Jay Mehta’s Mauritius-based Sea Island Investment Ltd (SIIL) company were undervalued. The investigations stated that the shares’ market value was between Rs 86 and Rs 99. However, they were sold at Rs 10 per share that led to the loss of taxes to the government.
