Shahrukh Khan, wife Gauri and actor Juhi Chawla have been summoned by the Enforcement Directorate (ED) for selling shares of KKR (Kolkata Knight Riders, SRK’s team in IPL) shares to a Mauritius-based company at lower values (in 2009), causing Rs 73.6 crore loss to the government.
As per a TOI report, in the initial years of IPL, Shah Rukh and Gauri’s company Red Chillies owned the entire shares of the team KKR. However, after the IPL tournament became a huge success in India, lakhs of shares were sold.
- 50 lakh shares of KKR were issued to TSIIL and 40 lakh shares were given to Juhi Chawla. These shares were allotted at a par value of Rs 10, although the actual value of these shares was much higher.
- Juhi Chawla subsequently sold her 40 lakh shares to her husband’s company SIIL at the same rate.
Both the companies belong to the same parent company. Thus, TSIIL got 90 lakh shares of KKR at Rs 10 a share, whereas the actual cost of each share ranged between Rs 86 to Rs 99.
Based on these findings, the ED concluded that the transactions caused Rs 73.6 crore foreign exchange loss to the Indian government.
The KKR team promoters allegedly sold their shares in the company to a Mauritius-based company at lower prices in 2009. The ED investigation concluded that it caused Rs 73.6 crore foreign exchange loss to the government. On basis of which they issued notices to Khan and others in March to start adjudication proceeding.
Now that looks like a well-thought out plan to evade taxes, if its true.
It seems, the ED wants to hear the final explanation from Khan himself, before deciding the amount of penalty for FEMA violations.
- Lets hope people don’t consider the summon as a height of ‘intolerance’ in India.
- Lets also hope that Mamata Banerjee doesn’t interfere with the findings/actions of the judiciary.
What do you have to say about this incident?