Last week, the Enforcement Directorate (ED) questioned the chartered accountants (CA) of Bollywood actor Shah Rukh Khan in the forex violation case.

Two chartered accountants of SRK were questioned and statements were recorded.

Like Shah Rukh - who was also questioned on Diwali day - both CAs were asked why they adopted a "wrong method" of undervaluing shares of his IPL franchise.

SRK had questioned in connection with the ongoing investigations into irregularities in the Indian Premier League (IPL).

The ED Sources says, "now questioning with all stakeholders and CAs has been completed. Its a case of forex violation, thus, showcause notice (SCN) would get issued against SRK and others by the next week."

The ED is investigating two separate sales of shares by IPL franchise Kolkata Knight Riders (KKR) in 2009 and 2010 to Sea Island Investment Ltd, a Mauritius-based company owned by actor Juhi Chawla's father-in-law Mahendra Mehta.

Khan's IPL franchise Kolkata Knight Riders Sports Private Limited (KRSPL), a start-up, was formed with him owning 10,000 shares initially.

As many as 40 lakh shares were later given to Juhi Chawla, while Mehta's company was issued 50 lakh shares at Rs 10 per share. Subsequently, Chawla transferred her shares too to Mehta's company.

KRSPL has two crore shares, of which Khan owns 1.1 crore shares and Mehta's company owns 90 lakh shares.

The actor was quizzed for over three hours on the transfer of 50 lakh shares at Rs 10 per share against a much higher market value.

According to sources, the actor used the 'present asset value (PAV)' instead of 'perceived earning capacity value (PECV)', resulting in lesser value per share while evaluating his shares.

ED's allegation that the actor undervalued his shares is based on a report submitted by chartered accountancy firm Chokshi & Chokshi LLP.

Chokshi and Chokshi was appointed to audit the value of the equity shares of certain IPL franchises to arrive at the correct valuation of the shares sold.

The agency has submitted its finding, concluding that the price of the shares in Khan's case should have been between Rs 70 and Rs 85.

ED suspects - by undervaluing its shares - SRK violated forex rules of worth Rs 70-80 crores, for which "action would be taken against all stakeholders."