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Bollywood Superstar Shah Rukh Khan was questioned by the Enforcement Directorate for the second time on Tuesday, in relation to the case of alleged irregularities in sale of shares of Kolkata Knight Riders. Khan co-owns KKR, a franchise of the Indian Premier League (IPL) and he was accused of undervaluing the team's shares. Khan reportedly denied any irregularities from his side. The case pertains to 2008-2009 sale of shares of KKR to a Mauritius based company owned by Juhi Chawla's husband Jay Mehta.
The ED quizzed King Khan for three hours on Tuesday for questionable process of sale of shares of Knight Riders Sports Pvt Ltd (KRSPL) to Mehta's enterprise. Khan had been served with the summons early in October and he finally appeared in front of the ED yesterday, which was the third time that he had been summoned. ED is probing allegations that the shares that were sold to Mehta were undervalued by eight to nine times. Khan has faced ED earlier in 2011, in relation to the alleged froeign exchange violation of Rs. 100 Crores. Also Read: Shah Rukh Khan in trouble: SRK summoned by Enforcement Directorate
In relation with the case, the statements of Juhi Chawla and Jay Mehta have already been recorded by the ED. At the time of incorporation in 2008, Red Chillies had 9900 shares of KRSPL. The valuation report, made by ED's external agency last year, said that when the equity shares of KRSPL were issued to Sea Island Investments, the fair value per equity share of KRSPL should be between Rs 70-86. However, the shares were issued at a value Rs 10 each.
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