IPL: ED notice to King Khan, Gauri, Juhi for Rs 73 cr violation

March 24, 2017

Mumbai, Mar 24: The Enforcement Directorate today issued a show-cause notice to actor Shah Rukh Khan, his wife Gauri, actor-friend Juhi Chawla and others for alleged loss of Rs 73.6 crore foreign exchange in a FEMA case related to the T-20 cricket league IPL.

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The agency said it has also issued notice to Knight Riders Sports Private Limited (KRSPL) which owns the Indian Premier League (IPL) team of Kolkata Knight Riders (KKR).

The notice has been issued for the sale of some shares of KRSPL to a Mauritius-based firm at a cost lower than their "actual value", resulting in loss of foreign exchange to the extent of Rs 73.6 crore.

The agency said the notice has been issued for "contravention of provisions of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 made under the Foreign Exchange Management Act".

While Gauri is a Director of KRSPL, Khan and Chawla are the owners of the IPL team KKR.

The case pertains to 2008-09 when the ED first began investigation against the IPL franchise and its owners.

Khan and others have been questioned by the ED multiple times in this case and the actor's statement was also recorded under FEMA provisions.

A show-cause notice under FEMA laws is issued when the investigation gets completed.

Khan's company Red Chillies Enterprises Private Limited (RCEPL), the agency said, is a wholly-owned subsidiary of Red Chillies International Limited based overseas in Burmuda and is co-owned by Gauri.

"In 2008 Red Chillies Enterprises Private Limited formed a special purpose vehicle namely M/s Knight Riders Sports Ltd for the purpose of acquiring IPL franchise rights of the cricket team named Kolkata Knight Riders.

"Initially, the entire share holding of Ms Kolkata Knight Riders Private Limited was with Red Chillies Enterprises and Gauri. After the success of IPL, about two crore additional shares were issued by KRSPL out of which 50 lakh shares were issued to The Sea Island Investment Ltd (TSIIL), Mauritius and 40 lakh shares were issued to Chawla.

"These shares were allotted at a par value of Rs 10 whereas the actual value of these shares was much higher," it said.

The ED said its investigation showed that Chawla subsequently sold her 40 lakh shares to TSIIL, Mauritius at the par value of Rs 10 only.

"Thus, foreign based company TSIIL was issued 90 lakh shares at par value while the actual cost of share at the time of issue/sale was ranging between Rs 86-Rs 99 per share. This has resulted in loss of foreign exchange to the extent of Rs 73.6 crore," the agency said.

The agency has given 15 days' time to all the parties to reply to the notice after which the adjudication proceedings will begin in this case.

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News Network
May 12,2024

Mangaluru, May 12: In a shocking development, a group of pilgrims which had travelled from Mangaluru International Airport to Saudi Arabia earlier this month, to perform Umrah has alleged that 26,432 Saudi Riyals, which were kept in a bag, have been stolen. 

In a complaint submitted to the Bajpe Police, Soukath Banu, wife of Ahmed Iqbal of Ajyad Tours and Travels, said that her husband, Ahmed Iqbal, along with 35 members, planned and scheduled to perform the Umrah and were travelling from Mangaluru International Airport (MIA) via Mumbai to Jeddah. 

Soukath Banu had given Ahmed Iqbal 2,000 Saudi Riyals for performing Umrah and other expenses. The group members were also told to bring Saudi Riyals to meet their expenses.

In her plaint, Soukath stated that the group had left for Jeddah on an IndiGo flight via Mumbai, and their return ticket to India was booked for May 13. 

At the airport, she said that 26,432 Saudi Riyals were collected in total, and they decided to keep them in baggage that had a lock. Accordingly, it was kept in the bag of Mohammad Badruddin Kadambar. The airport staff had even questioned what he had kept in the bag. 

The group reached Jeddah on May 1. To their surprise, Kadambar found that the baggage lock was broken open, the zip was damaged, and cash was stolen upon reaching Jeddah.

DCP (Law and Order) Sidharth Goyal said that following the complaint, one round of CCTV checks was conducted at the MIA along with the CISF personnel. The loading at the MIA was intact.

Further checks have to be carried out at Mumbai and Jeddah Airport as the victim found out that cash was missing only when they got the bag at the final destination, he added.

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News Network
May 10,2024

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A day after National Commission for Women said no woman from Hassan approached the national body to file complaints against Karnataka MP Prajwal Revanna, a new FIR accusing BJP leader Devaraje Gowda of abusing and assaulting a woman has come to light.

The FIR against Gowda was filed by a woman at the Holenarasipura town police station on April 1, after her husband had filed a complaint against the BJP leader on March 30. 

The purported victim's husband has alleged in his plaint that Gowda barged into their home, and threatened the couple while the BJP leader also abused the woman.

Gowda, notably, flagged Prajwal Revanna's case to the saffron party.

Reacting to the allegations levelled against him, the BJP politico posted a video on Facebook where he details how he met the woman and her husband in his office. He also claims that the allegations against him are a plot and false.

It must be noted here that a Special Investigation Team is currently probing the sexual assault cases against Prajwal Revanna who along with his driver Karthik is no longer in the country. A Blue Corner notice is also in place to apprehend the son of H D Revanna who himself is placed under judicial custody till May 14.

In a major twist to the entire case— the woman in the FIR alleged that Devaraje Gowda who apprised BJP of the sex videos involving Prajwal Revanna— has been harassing her for the past 10 months under the guise of helping her sell a property.

The woman also said that she came in contact with Gowda during the process involving the property that she wanted to sell. However, on the pretext of guiding her, the woman alleged that the whistleblower BJP leader physically assaulted and harassed her while Gowda also threatened the couple.

The woman has now sought police protection for herself and family. Further levelling allegations against Gowda in her plaint, she said that the politico had taken her to an isolated place where he assaulted her and threatened to kill the couple.

Former chief minister of Karnataka and Prajwal Revanna's uncle H D Kumaraswamy recently demanded a CBI probe in the Prajwal Revanna matter. However, Home Minister G Parameshwara turned down the demand for the investigation to be handed over to CBI.

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News Network
May 7,2024

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Udupi: Udupi became the second city on the Karnataka coast after Mangaluru to launch water rationing, a senior official said on Tuesday.

Commissioner of the Udupi City Municipal Corporation Rayappa said that the rationing system will come into force from Wednesday and will continue till the water in the reservoir reaches comfortable levels.

The dam built across the Swarna river at a place called Baje, which is the only source of water for Udupi city, recorded 3.25 meters of water as against the top level of 6.30 meters.

The decision of water rationing will be reviewed periodically until the reservoir regains its fullest levels, the official said.

The Mangaluru City Corporation resorted to water rationing on Saturday following declining water levels in the reservoir built across the Nethravati river at Thumbe. 

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