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Shah Rukh Khan asked to appear before Enforcement Directorate over IPL shares

The ED had also sent a show-cause notice to Shah Rukh Khan, wife Gauri Khan, and actress Juhi Chawla in March 

mumbai Updated: Jul 21, 2017 10:02 IST
Pratik Salunke
Pratik Salunke
Hindustan Times
Shah Rukh Khan,Enforcement Directorate,Indian Premier League
Shah Rukh Khan(HT FILE)

The Enforcement Directorate (ED) has asked actor Shah Rukh Khan to appear before it on August 23 in connection with the alleged undervaluation of Indian Premier League (IPL) shares.

Sources said that a notice was issued to the actor, according to which, he could present his defense before the special director of the ED. “We will hear what he has to say,” confirmed a senior ED officer.

The ED had sent a show-cause notice to Shah Rukh Khan, wife Gauri Khan, and actress Juhi Chawla in this regard in March.

According to the ED, in 2008, Red Chillies Enterprises Pvt. Ltd, which Khan owns, had formed Knight Riders Sports Pvt. Ltd. (KRSPL) to acquire IPL franchise rights for Kolkata Knight Riders.

Initially, Red Chillies and Gauri Khan owned all the shares of KRSPL. After the success of the IPL, about two crore additional shares were issued by KRSPL, of which 50 lakh were issued to The Sea Island Investment Ltd. (TSIIL), Mauritius and 40 lakh to Juhi Chawla. They were allotted at a par value of Rs10 whereas the actual value of these shares was much higher.

According to the ED, Juhi Chawla subsequently sold her 40 lakhs shares to M/s. TSIIL, Mauritius at the par value of ₹10, while the actual cost ranged between Rs86 and Rs99 per share. This has resulted in loss of foreign exchange to the extent of ₹73.6 crore, said officials.

First Published: Jul 21, 2017 00:29 IST