ED questions Shah Rukh Khan over sale of KRSPL shares

Mumbai (PTI): The Enforcement Directorate has recorded the statement of Bollywood actor Shah Rukh Khan in a matter of alleged irregularities in the sale of shares of Knight Riders Sports Pvt Ltd (KRSPL) to a Mauritius-based company.

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“We recorded Khan’s statement yesterday in connection with the violation of Foreign Exchange Management Act,” ED sources here said.

The case, dating back to 2008-09, pertains to the share sale of KRSPL, owned by Khan’s Red Chillies along with Juhi Chawla and her husband, to a Mauritius-based company owned by Chawla’s husband Jay Mehta.

ED is probing allegations that shares sold to the Jay Mehta-owned Sea Island Investments were undervalued by eight to nine times.

Khan had faced ED once in 2011 when he was questioned about alleged foreign exchange violation of around Rs 100 crore.

At the time of incorporation in 2008, Red Chillies had 9,900 shares of KRSPL. The valuation report, made by ED’s external agency last year, said that when the equity shares of KRSPL were issued to Sea Island Investments, the fair value per equity share of KRSPL should have been between Rs 70-86. However, the shares were issued at a value of Rs 10 each.

According to the Foreign Exchange Management Act (FEMA), the price of shares issued to persons residing outside India should not be lower than the price worked out under the guidelines set by stock market regulator SEBI in case of a listed company, or on the basis of fair valuation of shares by a chartered accountant as per guidelines of the erstwhile Controller of Capital Issues (CCI).

Officials said that Khan cooperated with them and has provided them with some documents related to the transfer of shares.

10 Comments

      • “SRK is very famous and we all love him. He is not guilty,” Sonam.

        How do you know, if he is guilty or not. Kindly leave that to the ED and if he is still not satisfied, he can move the courts seeking justice.

  1. “The valuation report, made by ED’s external agency last year, said that when the equity shares of KRSPL were issued to Sea Island Investments, the fair value per equity share of KRSPL should have been between Rs 70-86. However, the shares were issued at a value of Rs 10 each.”

    Definitely this speaks volumes about the ” INTOLERANCE” comment made by the actor. In the same manner those people who returned their awards never took the step of returning the price money or other sundry facilities offered by the government.

  2. Dear readers,

    Is SRK faced the wrath of Enforcement Directorate (ED) because he spoke up on the issue of intolerance against Modi’s government?

    In a similar incident Himachal Pradesh chief minister Virbhadra Singh, who is the senior-most chief minister in the country, faced ED raid on the day of his daughter’s marriage.

    In the past BJP accusing the Congress of turning the investigating agency into the “Congress Bureau of Investigation”.
    Enforcement Directorate and the CBI have nowadays become “instruments of vendetta”

    Jai hind

  3. Namaskara.

    Our friend, Shariah Shaikh trying to analyse the plight of his universal borother, SRK thru’ his communal lens,
    —————————————————
    “Is SRK faced the wrath of Enforcement Directorate (ED) because he spoke up on the issue of intolerance against Modi’s government? …..blah, blah, …. Enforcement Directorate and the CBI have nowadays become “instruments of vendetta””————————————–
    How come our Shariah Shaikh is not facing any wrath of Enforcement Directorate and the CBI, although he is shouting on this EYT forum, day in & day out, against the BJP & RSS and against the PM of the nation?
    Any answer by the Muttawa Shaikh based on tribal illogic?

    • How come our Shariah Shaikh is not facing any wrath of Enforcement Directorate and the CBI, although he is shouting on this EYT forum, day in & day out, against the BJP & RSS and against the PM of the nation? – KSB

      Hello USB…. since you are in the ED + CBI, that lapse must be because you are busy adding the 18% percent to ‘Award Wapsi’ and busy issuing notices to them

  4. According to Modi devotees, the Modi government does not misuse state power to retaliate against critics. The investigation of Teesta Setalvad and now Shah Rukh Khan for financial irregularities is just a coincidence.

  5. Sonam – SRK is very famous and we all love him. He is not guilty.

    That’s what I keep telling people. SRK is a national treasure. He along with all those Bollywood celebrities should be encouraged to do their tax-dodging activities without the authorities harassing them. Where will we be without SRK after all, eh? All of today’s success we see in India can be squarely attributable to SRK and his fellow entertainers. In fact I personally vouch for a special law passed in the parliament so that there is no hindrance while they carry out their dubious financial activities. Bloody hell, we are talking about the Silver tongued charmer here, no less… WTF? What was the Enforcement Directorate thinking?
    You have aptly summarised what I intended to say all along – if people are famous then they should never ever be held guilty irrespective of their questionable activities. There are millions of impressionable children and youth who would like to follow in his footsteps. Heaven forbid anything happens to that utopian dream we all have in India.

  6. Any answer by the Muttawa Shaikh based on tribal illogic?-Angola Bhat

    Sir, If SRK is invited for Chinese invented kites to fly during Gujarat Kite Festival (Makar Sankranti) accompanying new rockstar Modi to team with old bollywood rockstar Salman who knocked the poor in sleep, may he won’t have faced wrath of ED.

    Tehelka’s Tarun Tejpal,Teesta Setalvad and now Shah Rukh Khan whomsoever is the critics of government will face the same “instruments of vendetta” either “Congress Bureau of Investigation” or ED.

    Jai Hind

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