The Enforcement Directorate (ED) has issued a show-cause notice to Shahrukh Khan, Gauri Khan, and Juhi Chawla under the Foreign Exchange Management Act (FEMA), according to a report in The Hindu.
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The agency alleges that SRK, Gauri Khan, and Juhi Chawla have, by their actions, caused a loss of Rs. 73 crores in foreign exchange to the nation. The three are directors of Knight Riders Sports Pvt. Ltd (KRSPL), one of the franchises of the Indian Premier League in T20 cricket.
KRSPL was formed as a subsidiary of Red Chillies Entertainment — a company owned and run by Gauri Khan and SRK. After the success of the Kolkata Knight Riders team in the IPL, Red Chillies issued a number of shares to a Mauritius company and to Juhi Chawla. However, these shares were allotted at a value lower than their market value, which resulted in loss of foreign exchange, according to the Enforcement Directorate.
SRK, Gauri, and Juhi Chawla have 15 days to respond to the notice.