Mumbai: Actor Shilpa Shetty Kundra, her businessman husband Raj Kundra and another unidentified person have been booked by the Economic Offences Wing (EOW) of the Mumbai Police for allegedly cheating a city-based
businessman of Rs 60.48 crore in a loan-cum-investment arrangement linked to their now-defunct company, Best Deal TV Pvt Ltd.
The FIR, initially lodged at Juhu police station under various IPC sections for cheating and forgery, was reportedly transferred to the EOW as the sum involved exceeded Rs 10 crore. The complaint was filed by 60-year-old Deepak Kothari, a Juhu resident and director of Lotus Capital Financial Services, a non-banking financial company, through his advocates Dr Yusuf Iqbal and Zain Shroff.
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Details Of The Alleged Fraud
According to a Times of India report citing the FIR, Kothari was introduced to the Kundras by Rajesh Arya. At the time, Shilpa Shetty and Raj Kundra reportedly held 87.6 per cent shares in Best Deal TV, an online retail and home shopping platform.
The accused allegedly sought a Rs 75 crore loan at 12 per cent annual interest but later advised Kothari to route the amount as an 'investment' to avoid higher taxation. They allegedly assured him of fixed monthly returns along with repayment of the principal.
Kothari claims he transferred Rs 31.95 crore in April 2015 under a share subscription agreement, followed by Rs 28.53 crore in September 2015 under a supplementary agreement. In April 2016, a personal guarantee was reportedly provided. However, Shetty resigned as director in September 2016.
The complaint states that in 2017, Kothari discovered insolvency proceedings against Best Deal TV for defaulting on another agreement. Despite repeated follow-ups, including during the COVID-19 pandemic, he claims the money was never returned.
Kothari alleged that the transactions were misrepresented and his funds were diverted, causing him major financial loss.
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Shilpa & Raj's Legal Counsel Denies Allegations
Reacting to the development, Prashant Patil, legal counsel for Shetty and Kundra, denied all allegations. He 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,” as quoted by TOI. Patil further added that their auditors have provided all requested documents to the EOW, including detailed cash flow statements, and emphasised that the matter has already been legally settled in the appropriate forum.
The EOW is now conducting further investigation into the financial transactions, agreements and alleged diversion of funds.
