In a significant development, Bollywood actor Shilpa Shetty Kundra and her businessman husband, Raj Kundra, have been booked by the Economic Offences Wing (EOW) of the Mumbai Police. The couple, along with an unidentified third party, allegedly defrauded a city-based businessman of ₹60.48 crore in a loan-cum-investment arrangement linked to their now-defunct venture, Best Deal TV Pvt Ltd. The case has once again brought the couple under the scanner, prompting a strong denial from their legal team, who claims the matter is “purely civil in nature” with “no criminality involved.”
The complaint was filed by Deepak Kothari, a Juhu resident and director of Lotus Capital Financial Services, through his advocates Dr. Yusuf Iqbal and Zain Shroff. According to the First Information Report (FIR), Kothari was introduced to the Kundras by a mutual acquaintance, Rajesh Arya. In 2015, reports indicate that Shilpa Shetty and Raj Kundra controlled 87.6% of Best Deal TV, a home shopping and online retail platform.
The FIR alleges that the accused initially sought a ₹75 crore loan from Kothari at a 12% annual interest rate. However, to avoid higher taxation, they allegedly persuaded him to convert the loan into an investment, promising fixed monthly returns and the eventual repayment of the principal amount. Kothari claims that he subsequently transferred ₹31.95 crores in April 2015 under a share subscription agreement, followed by another ₹28.53 crores in September 2015 under a supplementary agreement, totalling ₹60.48 crores.
The situation reportedly worsened when, despite a personal guarantee being provided in April 2016, Shilpa Shetty resigned as a company director just five months later in September 2016. Kothari later learned that insolvency proceedings were launched against Best Deal TV in 2017 over a separate contract default. He alleges that all attempts to recover his money have been unsuccessful since then.
In response to the serious charges, Prashant Patil, the legal counsel for Shetty and Kundra, issued a statement strongly denying the claims. As quoted by the Times of India, Patil stated, “My clients deny all the allegations, which are purely civil in nature and have been adjudicated by the NCLT Mumbai on 04/10/2024. There is no criminality involved.”
The statement emphasizes that the matter is an old business transaction where the company faced financial distress and eventually went into a long legal battle at the National Company Law Tribunal (NCLT). Patil further asserted that their auditors have consistently submitted all necessary supporting documents to the EOW, including detailed cash flow statements. According to him, the agreement was purely an equity investment, and the company had since been ordered into liquidation. The legal team has labelled the case as “baseless and malicious” and has stated that they are initiating appropriate action against the perpetrators.
This is not the first time the celebrity couple has been embroiled in legal controversies. Raj Kundra has faced multiple legal issues in the past, including a high-profile case related to the production and distribution of alleged pornographic content. Last year, the Enforcement Directorate (ED) also attached properties worth a significant amount belonging to the couple in a money laundering case. These past events add another layer of complexity to the current situation and are likely to be a factor in public perception.
The EOW has confirmed that a thorough investigation is underway, with police examining financial transactions, agreements, and the alleged misappropriation of funds. While the legal battle is expected to be long and complex, the filing of the FIR marks a new chapter in the ongoing saga, with serious implications for the celebrity couple.
The unfolding of this case will be closely watched by the public and the media, with its outcome holding significant implications for the reputation and future of the celebrity couple.
