Kolkata Knight Riders (KKR) owners in trouble; Shah Rukh Khan, Juhi Chawla accused of violating FEMA rules

Shah Rukh Khan and other owners of Kolkata Knight Riders (KKR) have received a show cause notice from the Enforcement Directorate (ED) for allegedly violating the FEMA guidelines.

Apart from Shah Rukh, his wife Gauri Khan and actress Juhi Chawla have received the notice. The ED alleged that SRK had sold KKR shares to Juhi at much lesser prices resulting in huge losses.

After Kolkata Knigt Riders Pvt Ltd was created from Red Chillies Entertainment, Shah Rukh bought KKR in 2008, making Gauri its director. All the shares of KKR were initially bought under Gauri's name, but after the team's success, 2 crore more shares were bought, out of which 40 lakh shares were sold to Juhi, as claimed by ED, according to The Financial Express.

The shares were sold to Juhi at a par price of Rs 10 each, but ED claimed each share was worth Rs 86-90. Hence, when the actress sold the shares after some time, it caused a loss of Rs 73.6 crore in foreign exchange, the report said.

The show cause notice has been sent under Rule 4(1) of Foreign Exchange Management, 2000. Seems like Shah Rukh and other owners of KKR are in for some big trouble if the ED's claims are true. Shah Rukh had reportedly bought KKR for a huge sum of Rs 75 million.