The Enforcement Directorate has issued a summons to Kolkata Knight Riders co-owners, actors Shah Rukh Khan and Juhi Chawla and her husband Jay Mehta, for allegedly violating Foreign Exchange Management Act (FEMA) norms.
Confirming the development on Wednesday, a top ED official said a notice was sent in March this year. He, however, did not divulge what replies were received by the agency.
Sources said those who have been served the summons have been given a May-end deadline to appear before the agency which is probing whether shares of Knight Riders Sports Pvt. Ltd. (KRSPL) were undervalued in a transfer deal which took place in 2008-09.
In the deal between Red Chillies and Mr. Mehta’s Malaysia-based company, Sea Island Investments Ltd. (SIIL), 50 lakh shares were issued to SIIL. Similarly Ms. Chawla sold 40 lakh shares owned by her to SIIL. The price i.e. Rs. 10 per share, according to an audit, was undervalued 8 to 9 times.
On the fixing of a “fair” price for the shares, the audit report and those involved in the deals differ. According to the report, the fair value of KRSPL shares issued to SIIL should have been between Rs. 70 to Rs. 86 per share while those the company received from Ms. Chawla in the case of transfer of equity share should have been priced between Rs. 83 to 99.
