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IPL: ED issues third summon to Shah Rukh Khan over forex violation

New Delhi: The Enforcement Directorate (ED) has issued third summon to Kolkata Knight Riders co-owner Shah Rukh Khan in connection with the share sale of the IPL franchise.This came after Khan failed to appear in
India TV News Desk October 27, 2015 10:12 IST
India TV News Desk

New Delhi: The Enforcement Directorate (ED) has issued third summon to Kolkata Knight Riders co-owner Shah Rukh Khan in connection with the share sale of the IPL franchise.

This came after Khan failed to appear in the earlier summons issued to him, a DNA report said, adding that he is required to be present before the agency by first week of November.

The matter pertains to the alleged violation of forex laws of around Rs 100 crore in Knight Riders Sports Pvt Ltd (KRSPL) deal.

This has come after a recent audit indicated that shares sold by KRSPL to Juhi Chawla's husband Jay Mehta-owned owned Sea Island Investment (SIIL) were 8 to 9 times undervalued.

The share transfer is believed to have happened in 2008-09 and ED is probing KRSPL deal since 2010 under Foreign Exchange Management Act (FEMA).

The audit report stated that when equity shares of KRSPL were issued to SIIL, the fair value of KRSPL shares should have been between Rs 70 to Rs 86 per share. However, the shares were issued at Rs 10 per share.

Similarly, in the case of transfer of equity share of KRSPL from Juhi Chawla to SIIL, the fair value per equity share of KRSPL should be between Rs 83 to 99. But shares were transferred again at Rs 10 per share.