Shahrukh Khan, the co-owner of the Kolkata based franchise in the IPL has been summoned by the Enforcement Directorate over the illegal selling of the shares of the Kolkata Knightriders, which is registered as Knighriders Sports Private Limited. He is accused to have sold this to a Mauritus based company, which is owned by the husband of other co-owner of the team Juhi Chawla. This case dates back to 2008-09.
However, this is not the first time but third time that the summons have been sent to Shahrukh Khan. The latest one being earlier this month and the sources at ED claims that Khan will soon have to turn to them as they need more information from him.
The case is mainly about the violation of the foreign exchange of around 100 crores as the shares sold has been under-valued by around 9 times. Juhi Chawla and her husband, Jay Mehta, have already given their statement.
The Foreign Exchange Management Act states that the shares when sold to someone, who is residing outside India, cannot be less than the value determined by the SEBI, who regulates the stock market. However this is only valid for listed companies and for the non-listed companies, it should not be less than what is determined by a Chartered accountant according to rules listed in Controller of Capital Issues.