Kites production puts Roshans in trouble for FEMA violation !

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taxRoshans are in for questioning by enforcement Directorate for Foreign Management Exchange Act violation. It is reported in media that  investigations against Roshan began in May this year after a representative of Spectrum Entertainment, a US-based company, sent a complaint to the agency saying that Roshan had paid them just $ 4.3 million against pending bills of $ 5.9 million. Spectrum Entertainment was hired by Roshan to manage all outdoor shoots of Kites in the US.

Spectrum Entertainment alleged that Roshan drew Rs 9 lakh from production expenses and spent the money for his personal use. “The complainant has furnished all the challans which clearly indicate that he (Roshan) withdrew the cash from the production account,” an ED officer, who did not wish to be identified, said. All these transactions took place between June 2008 and September 2008.

ED is investigating the allegations that Roshan used foreign exchange meant for production work to meet personal expenses. Apart from that , the  charge against Roshan is also that junk film reels from India for the shoot were carried from India  but the Roshans used fresh reels bought in the US. This way, he evaded duty on the new f i l m reels when he returned to India.