Mumbai: Bollywood superstar Shah Rukh Khan was questioned by Enforcement Directorate for three hours over alleged violation of Foreign Exchange law on Tuesday.
Last month, Shah Rukh Khan was served summons by Enforcement Directorate in connection with allegedly irregular sale of shares of Knight Riders Sports Pvt Ltd (KRSPL) to a Mauritius-based company, owned by actor Juhi Chawla's husband Jay Mehta.
"We recorded Khan's statement yesterday in connection with the violation of Foreign Exchange Management Act," PTI quoted ED sources.
The case pertains to 2008-09, regarding the share sale of KRSPL, owned by Khan's Red Chillies along with Chawla and her husband.
Shah Rukh reportedly told ED officers that he did not violate FEMA in the sale of KKR shares.
ED is probing allegations that shares sold to Chawla's husband Jay Mehta-owned Sea Island Investments were undervalued by eight to nine times.
Shah Rukh denied devaluating the shares during the questioning.
Officials said that Khan cooperated with them and has provided them with some documents related to the transfer of shares.
Khan had faced ED once in 2011 when he was questioned about alleged foreign exchange violation of around Rs 100 crore.
The agency has already recorded the statements of Chawla and Mehta.
At the time of incorporation in 2008, Red Chillies had 9900 shares of KRSPL. The valuation report, made by ED's external agency last year, said that when the equity shares of KRSPL were issued to Sea Island Investments, the fair value per equity share of KRSPL should be between Rs 70-86. However, the shares were issued at a value Rs 10 each.
According to Foreign Exchange Management Act (FEMA), the price of shares issued to persons residing outside India should not be lower than the price worked out under the guidelines set by stock market regulator SEBI, in case of a listed company or on the basis of fair valuation of shares by a chartered accountant as per guidelines of the erstwhile Controller of Capital Issues (CCI).
