IT searches Red Chillies Mumbai office

MUMBAI - The Income Tax department Thursday searched Bollywood star Shah Rukh Khan’s Red Chillies Entertinment to inquire about its dealings and involvement in the Indian Premier League (IPL).

A team of around 10 IT officials visited the Khar (western suburb) offices of Red Chillies, which has interests in Kolkata Knight Riders (KKR), which Khan co-owns with Bollywood actress Juhi Chawla, an official said.

The search operation was part of the ongoing IT action against various groups, companies, franchisees and individuals connected with IPL to track down suspected financial irregularities in the cricketing event - the third and most controversial season of which draws to a close this week.

Earlier, the Enforcement Directorate (ED) and IT officils questioned IPL chief Lalit Modi on the alleged slush funds from abroad which are believed to have found their way into IPL.

The officials had questioned Modi briefly Wednesday evening after a major crackdown on IPL’s media partners in north-west Mumbai suburbs.

On Wednesday, the IT raided the premises of Multi Screen Media at Malad, the World Sports Group at Khar and Pat Magnarella Management in Bandra.

This was followed by a top-ranking IT official leaving for New Delhi Thursday to submit a report on the outcome of the investigations into the IPL here over the past one week.

Simultaneously, the ED Mumbai registered a case against “unknown persons” under the Foreign Exchange Management Act (FEMA) to probe unauthorized transfer of huge foreign funds without the permission of the Reserve Bank of India (RBI).

The ED move was prompted by information that huge funds have found their way into IPL from international tax havens, officials said.