Newsbytes
  • India
  • Business
  • World
  • Politics
  • Sports
  • Technology
  • Entertainment
  • Auto
  • Lifestyle
  • Inspirational
  • Career
  • Bengaluru
  • Delhi
  • Mumbai
  • Videos
  • Visual Stories
  • Reviews
  • Phone Reviews
  • Fitness Bands Reviews
  • Speakers Reviews
  • Find Cricket Statistics
Hindi
More
In the news
Twitter
Xiaomi
Adani Group
Life Insurance Corporation of India
Stock Market
Newsbytes
Hindi
Newsbytes
User Placeholder

Hi,

Logout


India
Business
World
Politics
Sports
Technology
Entertainment
Auto
Lifestyle
Inspirational
Career
Bengaluru
Delhi
Mumbai
Videos
Visual Stories
Reviews
Phone Reviews
Fitness Bands Reviews
Speakers Reviews
Find Cricket Statistics

More Links
  • Videos

Download Android App

Follow us on
  • Facebook
  • Twitter
  • Linkedin
  • Youtube
 
Home / News / Business News / SRK questioned for 4 hours in forex case
Business

SRK questioned for 4 hours in forex case

SRK questioned for 4 hours in forex case
Written by Shiladitya Ray
Nov 11, 2015, 04:17 pm 2 min read
SRK questioned for 4 hours in forex case
Credits:

The Enforcement Directorate (ED) questioned Shah Rukh Khan for 4 hours regarding a violation of the Foreign Exchange Management Act (FEMA). The case, dating back to 2008-2009, pertains to the share sale of Knight Riders Sports Pvt Ltd. (KRSPL) to the Mauritius-based company, Sea Island Investment (SIIL). The ED is investigating allegations that the 5 million shares sold to SIIL were undervalued.

Shares
Share division in KKR

At the time of incorporation in 2008, Shah Rukh Khan-owned Red Chillies Entertainment held 9,900 shares of KRSPL. In March 2009, Red Chillies sold 5 million KRSPL shares to Mauritius-based Sea Island Investment Ltd. SIIL also bought all 4 million KRSPL shares held by Juhi Chawla for Rs.4 crore. As of now, Red Chillies holds 11 million and SIIL owns 9 million KRSPL shares.

Do you know?
Sea Island Investment Limited

The Mauritius-based company, Sea Island Investment Limited (SIIL) is owned by Jay Mehta from the Mehta Group. Interestingly, Jay Mehta is the husband of actress and KKR promoter Juhi Chawla.

FEMA
The Foreign Exchange Management Act

As per Foreign Exchange Management Act (FEMA) guidelines, the price of shares issued to individuals residing outside India should not be lower than the price shown under the regulations set by stock market regulator SEBI. However, an audit of the deal by an external firm in 2014 led the ED to conclude that value of shares owned by SIIL was inconsistent with price guidelines.

Data
Valuation of the forex violation

The audit of the KRSPL share sale to SIIL, conducted in 2014, showed that the shares were 8-9 times undervalued. The resulting foreign exchange violation is estimated to be around Rs.100 crores.

Violations
Alleged violations in sale of KKR shares

The ED, in 2010, started investigating allegations that the KRSPL shares sold to SIIL in 2008 were undervalued . According to an audit report, equity shares of KRSPL were issued to SIIL at Rs.10/share, when the fair value was estimated to be Rs.73- Rs.86/share. Juhi Chawla's KRSPL shares were also transferred to SIIL at Rs.10/share, when the fair value was an estimated Rs.83- Rs.99/share.

Do you know?
SRK summoned for the third time

Shah Rukh Khan had faced the Enforcement Directorate once in 2011 when investigations regarding KRSPL share sales had just begun. He was summoned again by ED in May 2015, and the latest summon marks his third session with the ED.

Share this timeline
Facebook
Whatsapp
Twitter
Linkedin
Shiladitya Ray
Shiladitya Ray
Mail
Budding social scientist with a keen interest in social studies of science and the sociology of knowledge. Cinephile. Liverpudlian. Metalhead.
Latest
Latest
Everything you need to know about dermaplaning or face shaving
Everything you need to know about dermaplaning or face shaving Lifestyle
'NTR 31': 'KGF' director joins hands with 'RRR's Jr. NTR
'NTR 31': 'KGF' director joins hands with 'RRR's Jr. NTR Entertainment
MS Dhoni to lead CSK in IPL 2023: Details here
MS Dhoni to lead CSK in IPL 2023: Details here Sports
Virat Kohli smashes this unique IPL record: Details here
Virat Kohli smashes this unique IPL record: Details here Sports
Union minister Ashwini Vaishnaw makes India's first 5G call
Union minister Ashwini Vaishnaw makes India's first 5G call Technology
Next News Article
Next News Article

Love Business news?

Subscribe to stay updated.

Business Thumbnail
India News Business News World News Politics News Sports News Technology News Entertainment News Auto News Lifestyle News Inspirational News
Career News Bengaluru News Delhi News Mumbai News Mukesh Ambani Indian Premier League (IPL) Karnataka Samsung Xiaomi West Bengal
Bihar Virat Kohli Rohit Sharma Haryana Narendra Modi Arvind Kejriwal Tamil Nadu Gujarat Yogi Adityanath YouTube
Instagram Hollywood News Uttar Pradesh Kerala Netflix Bollywood News Mamata Banerjee Maruti Suzuki Rahul Gandhi Elon Musk
Shah Rukh Khan Chelsea FC OPPO Akhilesh Yadav Indian Cricket Team Apple Manchester United Salman Khan Cryptocurrency OnePlus
Amitabh Bachchan ICC Women's World Cup Vivo India vs Sri Lanka
About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive IPL 2022 Schedule IPL 2022 Points Table Find Cricket Statistics
Follow us on
Facebook Twitter Linkedin Youtube
All rights reserved © NewsBytes 2022