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  Entertainment   Bollywood  23 Aug 2017  Give us 4 weeks to respond to notice, Shah Rukh Khan, Gauri tell ED

Give us 4 weeks to respond to notice, Shah Rukh Khan, Gauri tell ED

Published : Aug 23, 2017, 2:51 am IST
Updated : Aug 23, 2017, 2:52 am IST

This was a second notice from the ED to seek the couple’s side ahead of the final hearing.

Shah Rukh Khan
 Shah Rukh Khan

Mumbai: A month after the Enforcement Directorate (ED) issued summons to actor Shah Rukh Khan and his wife Gauri, asking them to appear on August 23 in connection with the Foreign Exchange Management Act (FEMA) violations case pertaining to the 2009 Indian Premier League (IPL), the duo sought an extension on the ground of seeking legal opinion.

The ED received a communication from the couple, asking for four weeks more to appear and respond to the ‘Personal Hearing Notice’ served to them on July 20.

The officials said that the extension was granted, however, with a rider that no further time would be given to them as it is holding up the adjudication process in the case, which is now awaiting only their say.

“They sought for extension and we have granted it, however, there we won’t give them any further time. The final date has been decided as September 23,” said a senior ED officer.

Sources in the ED also added that it is, however, not mandatory for the actor and his wife to appear and that their legal counsels could also put up their say ahead of the adjudication process.

This was a second notice from the ED to seek the couple’s side ahead of the final hearing.

The case involves Khan, Gauri, actress Juhi Chawla and her husband Jay Mehta. In March, the agency had sent a show-cause notice to Khan and the others and had sought for a reply to be filed within 15 days.

The FEMA violation pertains to the losses incurred by the government that are allegedly to the tune of Rs 73.6 crore.

The notices were served under Rule 4(1) of the Foreign Exchange Management (Adjudication Proceedings and Appeal Rules), 2000 and the Special Director of ED, a quasi-judicial authority, will hold a hearing.

KKR controversy

In the year 2008, M/s. Red Chillies Enterprises Pvt. Ltd. formed a special purpose vehicle namely M/s. Knight Riders Sports Pvt Ltd (KRSPL) for the purpose of acquiring IPL franchise rights of ‘Kolkata Knight Riders’. Initially, the entire share holding of M/s. Kolkata Knight Riders Pvt. Ltd. was with Red Chillies Enterprises and Gauri Khan. Sources said that after the success of IPL, about 2 crore additional shares were issued by KRSPL out of which 50 lakh shares were issued to Sea Island Investment Ltd (SIIL), Mauritius and 40 lakh shares were issued to Juhi Chawla. These shares were allotted at a par value of Rs 10, whereas the actual value of these shares was much higher. Ms Chawla subsequently sold 40 lakh of her shares to M/s. TSIIL, Mauritius at the par value of Rs 10. Thus M/s. TSIIL was issued 90 lakh shares at par value and actual cost of each share at the time of issue/sale ranged between Rs 86 and Rs 99.

Tags: enforcement directorate, shah rukh khan