25 March,2017 08:52 AM IST | | A Correspondent
SRK, Gauri and Juhi Chawla have been asked to present submissions within 15 days
Shah Rukh Khan and Juhi Chawla
Shah Rukh Khan
The Enforcement Directorate (ED) on Friday issued a showcause notice to the owners of Kolkata Knight Riders (KKR) Shah Rukh Khan, his wife Gauri Khan and actress Juhi Chawla under the Foreign Exchange Management Act (FEMA) for loss of foreign exchange worth Rs 73.6 crore in sale of shares. Confirming the development, a senior ED officer said that the trio had violated FEMA guidelines and had been given 15 days time to present their submissions.
Juhi Chawla
The case
According to ED sources, in 2008, using funds from his company Red Chillies Entertainment, of which Gauri is the director, Khan had formed KKR and bought an IPL team. Initially all the company shares were in Gauri's name, but after the team's success, nearly 2 crore shares were bought out. While 50 lakh shares were issued to The Sea Island Investment Ltd-Mauritius (TSIIL), 40 lakh were given to Juhi.
The Directorate claims that the shares were allotted at a value of Rs 10, while the actual cost at the time of issuing them was Rs 90.
Later, even Chawla sold her 40 lakh shares to TSIIL-Mauritius at a value of Rs 10. This resulted in a loss of foreign exchange to the tune of Rs 73.6 crore.
