Shilpa Shetty, Raj Kundra Deny ₹60 Crore Fraud Allegations
Mumbai: Bollywood actor Shilpa Shetty and her husband, businessman Raj Kundra, have strongly refuted allegations of a ₹60 crore fraud, calling the case “baseless” and “malicious.” The couple, through their lawyer, insisted that there is no criminality involved and that the matter is purely civil in nature, already settled by the National Company Law Tribunal (NCLT).
The allegations stem from a complaint by businessman Deepak Kothari, director of Lotus Capital Financial Services Limited. Kothari has accused the couple of cheating him by taking funds under the pretext of expanding their company, Best Deal TV Private Limited, and allegedly diverting the money for personal use. The Economic Offences Wing (EOW) of the Mumbai Police has filed an FIR and is currently investigating.
Businessman Alleges Fraudulent Investment Deal
According to Kothari’s complaint, Shetty and Kundra first approached him in 2015 seeking a ₹75 crore loan for their television shopping channel, Best Deal TV, at an annual interest rate of 12%. However, he claims that the couple later suggested converting the loan into an “investment” instead, assuring him of monthly returns along with repayment of the principal.
In April 2015, Kothari transferred ₹31.95 crore to the company’s bank account under a share subscription agreement. A further ₹28.53 crore was transferred in September 2015 through a supplementary agreement. Kothari alleges that despite multiple follow-ups, his funds were never returned, and that the money was “dishonestly used” by the couple.
EOW Investigation Underway
The Economic Offences Wing has registered a case against Shetty and Kundra and is examining the financial transactions related to Best Deal TV. The investigation will review agreements, bank records, and cash flow statements to determine whether there was any misappropriation of funds.
Sources within the EOW have indicated that documents provided by both sides are being scrutinized, and statements from company auditors have been recorded. The case falls under sections related to cheating and criminal breach of trust under the Indian Penal Code.
Couple’s Legal Response
Advocate Prashant Patil, representing Shetty and Kundra, issued a detailed statement denying all allegations. He asserted that the dispute had already been adjudicated by the NCLT on October 4, 2024, following the company’s financial distress and liquidation process.
“This is an old business transaction where the company unfortunately went into financial trouble. The NCLT has already passed orders in the matter,” said Patil. “Our clients have fully cooperated with the authorities, providing all required cash flow statements and supporting documents to the EOW. The investment in question was purely equity-based, with no criminal intent whatsoever.”
Patil further claimed that the company’s chartered accountants have met with the EOW over 15 times in the past year, submitting evidence that supports the couple’s position. “This is nothing but an attempt to malign our clients’ reputation, and we are taking appropriate legal action against the perpetrators,” he added.
Past Controversies
Raj Kundra has been in the public eye for several high-profile controversies in recent years. In 2021, he was arrested in connection with a case involving the production and streaming of pornographic films, a charge he denied, and was later granted bail. In 2023, his properties were searched by the Enforcement Directorate in a separate money laundering case.
Despite these incidents, the couple has maintained a visible presence in public life. Shilpa Shetty continues her work in films, television, and fitness, while Kundra has been involved in various business ventures.
What Lies Ahead
As the EOW investigation progresses, both parties are expected to submit additional evidence to substantiate their claims. If the case is proven to be civil in nature, it could be dismissed from the criminal docket. However, if financial misappropriation is established, the charges could carry significant legal consequences.
For now, Shetty and Kundra are firm in their stance that the matter is being blown out of proportion and is part of an agenda to tarnish their image. The investigation’s outcome will determine whether the case remains a corporate dispute or escalates into a criminal trial.
