The Enforcement Directorate (ED) has issued a show cause notice to the owners of Indian Premier League (IPL) franchise Kolkata Knight Riders. KKR is co-owned by Shah Rukh Khan, his wife Gauri Khan and Juhi Chawla. The show cause notice has been issued to KKR owners for violating the FEMA guidelines.

ED under Rule 4(1) of Foreign Exchange Management (Adjudication Proceedings and Appeal Rules), 2000 has issued the notices, reported ANI. The agency issued the notice in connection with the share sale of KRSPL, the franchise owned by Shah Rukh Khan’s company Red Chillies Entertainment Pvt Ltd in partnership with actor Juhi Chawla and her husband Jay Mehta. Also Check- Kolkata Knight Riders Schedule IPL 2017

“We issued show cause notices against Knight Riders Sports, Gauri Khan and others under FEMA for loss of foreign exchange worth Rs 73.6 crore in sale of shares,” an official was quoted as saying by IANS.

The agency had also issued summons to Shah Rukh Khan in the matter in 2015 and before that. The matter pertains to the 2008 share transfer, audited by an external firm in 2014. It noted that shares sold to Jay Mehta-owned Sea Island Investment were eight-nine times undervalued by KRSPL. Also Check-  Indian Premier League (IPL) 2017 Schedule

The share transfer is believed to have happened in 2008-09 and the agency has been probing KRSPL deal since 2010 under FEMA. With IPL 10 set to begin from April 5, it will be interesting to see what ramifications this show cause notice will have on the upcoming season.