SRK in Trouble for Forex Violation Case

WEB DESK: Bollywood King Shah Rukh Khan has been questioned by the Enforcement Directorate (ED) about the irregularities in the sale of shares of Knight Riders Sports Pvt Ltd (KRSPL) to a Mauritius-based company.

According to Times of India report, Shah Rukh Khan told the officials that in 2009, the IPL and KKR were not profit making ventures and accordingly they evaluated the share prices at that point of time. He denied any wrongdoing in the process and stated that valuation of shares increased afterwards.

The ED had registered a case against KKR and three other IPL teams under Foreign Exchange Management Act (FEMA) and summoned Khan twice in the past to record his statement. But the actor was busy with his film schedule and couldn’t visit the ED to record his statement.

The Enforcement Directorate is investigating whether the shares of the team were undervalued as it could be a violation of the provisions of Foreign Exchange Management Act. ED is probing allegations that shares sold to the Jay Mehta-owned Sea Island Investments were undervalued by eight to nine times.

SRK was quizzed in 2011 for allegations that KKR had received illegal money transferred from certain foreign tax havens.

Copyright Business Recorder, 2015