[caption id="attachment_588563" align="aligncenter" width="628"]<img class="size-full wp-image-588563" alt="Shah Rukh Khan-owned Kolkata Knight Riders have won the IPL twice IANS" src="https://www.cricketcountry.com/wp-content/uploads/2017/03/Kolkata-Knight-Riders-KKR-co-owner-and-actor-Shah-Rukh-Khan-and-others5.jpg" width="628" height="355" /> Shah Rukh Khan-owned Kolkata Knight Riders have won the IPL twice IANS[/caption] <p></p> <p></p><strong>Mumbai</strong>: The Enforcement Directorate on Friday issued a show-cause notice to actor Shah Rukh Khan, his wife Gauri, actor-friend Juhi Chawla and others for alleged loss of INR 73.6 crore foreign exchange in a FEMA case related to the T 20 cricket league IPL. 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 INR 73.6 crore. <strong>READ: <a title="KKR in IPL 2017 schedule: Team and squad details, match time table and venues" href="https://www.cricketcountry.com/news/kolkata-knight-riders-in-ipl-2017-schedule-team-and-squad-details-match-timetable-and-venues-587835">KKR in IPL 2017 schedule: Team and squad details, match time table and venues</a></strong> <p></p> <p></p>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. <p></p> <p></p>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. <strong>READ: <a title="IPL 2017: Russell's absence would be worry for KKR, feels Pandey" href="https://www.cricketcountry.com/news/ipl-2017-andre-russells-absence-would-be-worry-for-kolkata-knight-riders-feels-manish-pandey-580201">IPL 2017: Russell's absence would be worry for KKR, feels Pandey</a></strong> <p></p> <p></p>"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. <strong>READ: <a title="IPL Auction 2017: KKR overhauls squad, possibly along with game-plan" href="https://www.cricketcountry.com/articles/ipl-auction-2017-kolkata-knight-riders-overhauls-squad-possibly-along-with-game-plan-578823">IPL Auction 2017: KKR overhauls squad, possibly along with game-plan</a></strong> <p></p> <p></p>The ED said its investigation showed that Chawla subsequently sold her 40 lakh shares to TSIIL, Mauritius at the par value of INR 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 INR 86-Rs 99 per share. This has resulted in loss of foreign exchange to the extent of INR 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.