Shah Rukh Khan, Juhi Chawla issued a show cause notice for violating FEMA rules
ED issues a show cause notice to Shah Rukh Khan, wife Gauri Khan and Juhi Chawla alleging that they have violated the Fema rules.
Kolkata Knight Riders' promoters Shah Rukh Khan, wife Gauri Khan and actor Juhi Chawla have been issued a show cause notice by the Enforcement Directorate (ED) for violating Foreign Exchange Manage Act (Fema) rules.
The IPL team apparently sold their shares for lower prices in 2009 to a Mauritius-based company, The Sea Island Investment Ltd which is owned by Juhi Chawla's husband Jay Mehta, that led to a loss of Rs 73.6 crore to the government.
The ED had earlier recorded SRK's statement in the case in November 2015. After proper investigations, the agency filed a complaint against the IPL team co-owners and are expected to be called for their final hearing in the next two weeks. Penalty vis-a-vis the loss will then be decided. The penalty amount is said to be triple times the amount valued as loss.
Shah Rukh has been summoned twice by the ED earlier. Khan reportedly told the officials that the ILP and KKR were not making any profit and based on that they evaluated the share prices at the point. He refuted allegations of wrongdoings, however, it seems the officials were not satisfied with his explanations.
According to the ED, Red Chillies, the company owned by SRK and Gauri owned the entire shareholding of KKR, however, the duo issued a part of their shares to TSIIL and Juhi. The shares were allotted at lower prices, alleged ED.
It's however, not clear when King Khan along with others will record his statement.
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