Bollywood actor Shilpa Shetty and her businessman husband Raj Kundra have launched a decisive legal challenge against the Mumbai Police’s Economic Offences Wing (EOW). The couple formally moved the Bombay High Court today, filing petitions that seek to quash the ₹60-crore cheating case lodged against them.
Beyond seeking the dismissal of the First Information Report (FIR), the couple has also urgently requested the court to direct the police not to file a chargesheet in the case or take any coercive action against them while their pleas remain under judicial review. The court heard the matter and has scheduled the next hearing for November 20, instructing the couple to serve copies of their petitions to the complainant.
The cheating case stems from a complaint filed by businessman Deepak Kothari, director of Lotus Capital Financial Services Ltd. Kothari alleges that between 2015 and 2023, the celebrity couple induced him to invest ₹60 crore in their now-defunct home shopping and online retail company, Best Deal TV Pvt Ltd.
The central accusation is that the invested funds, intended for business expansion, were allegedly diverted and utilized for the couple’s personal benefits. The EOW, which is investigating the matter, has reportedly found preliminary evidence suggesting funds were siphoned off through interconnected firms and that expenses were potentially fabricated.
The EOW recently ramped up its probe, questioning several former employees of Best Deal TV Pvt Ltd and conducting financial audits to meticulously trace the money trail of the significant investment.
In their writ petitions filed before a bench of Chief Justice Shree Chandrashekar and Justice Gautam Ankhad, the couple mounted a strong defense, vehemently denying any criminal wrongdoing.
Their pleas argue that the FIR was lodged based on a “false and distorted set of facts” and was “maliciously filed with an ulterior and malafide motive to extort money” from the high-profile pair.
The core of their legal argument rests on two pillars:
- Civil and Contractual Nature: They assert that the entire dispute is purely civil and contractual, arising solely from a failed business venture and subsequent investment loss, rather than any criminal conspiracy or fraudulent design.
- Demonetisation Impact: They attribute the collapse of Best Deal TV Pvt Ltd directly to “unforeseen economic circumstances,” specifically citing the severe impact of demonitization in November 2016 on their cash-based business model, arguing the losses were merely business losses.
Shilpa Shetty, in her individual plea, further clarified her position, stating emphatically that she was not involved in the day-to-day activities of Best Deal TV and was associated with the company for a “very limited time.” She argues that there are no specific allegations connecting her directly to the alleged financial fraud or the company’s transactions.
The filing of these petitions is seen as a crucial step for the couple, who are currently restricted by a Look Out Circular (LOC) issued against them in connection with the case, which has previously prevented them from traveling abroad.
The Bombay High Court’s decision on November 20th will determine whether the EOW can proceed with filing a chargesheet, which would escalate the case to a formal trial, or whether the court will pause proceedings, granting the couple a major interim relief.
