ED records SRK statement; final notice soon in IPL FEMA probe

With the Enforcement Directorate recording statement of Bollywood actor King Khan in a foreign exchange violations case, investigations into this major case of alleged financial irregularities in T-20 cricket tournament IPL is ready to complete soon. Khan is being probed on a selected charge of irregularities in the sale of shares of Knight Riders Sports Pvt Ltd, a franchise owned by his company Red Chillies Entertainment, to a Mauritius-based company. The agency, after this questioning, is expected to issue by December or early next year a final show-cause notice under FEMA in the probe involving Kolkata Knight Riders (KKR) and related entities, sources said. The recent questioning happened once the actor reached the agency’s office in Ballard Estate here on November 10 and spent over three hours with the investigators probing the case under provisions of the Foreign Exchange Management Act (FEMA). Khan couldn’t be reached for comments. Dating back to 2008-09, the case pertains to the sale of share of Knight Riders, co-owned by Khan and his co-actor and friend Juhi Chawla and her husband Jay Mehta, to a Mauritius-based company owned by Mehta. The central agency is probing allegations that shares sold were allegedly undervalued by eight to nine times by Khan’s business end. The actor had been questioned by the ED regarding this case earlier in 2011 apart from the business dealings of Kolkata Knight Riders, the IPL team co-owned by the actor. They said during the latest round of questioning, Khan “cooperated” with the investigators and handed over some relevant documents to them. They also added that he has assured that his legal and Chartered Accountancy firms will be in active touch with the agency so that the probe could be completed soon. They added that all the aspects of investigation are more or less complete and the final notice will now be served.

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