The Economic Offences Wing (EOW) of the Bombay police has issued Look Out Circulars (LOCs) against actress Shilpa Shetty and her husband, Raj Kundra, in a Rs. 60.50-crore cheating case linked to a firm in which the couple held majority stake. A legal firm representing an investor, Deepak Kothari, had sought immediate travel restrictions, freezing of bank accounts and assets, and appointment of an independent forensic auditor.
The case relates to an FIR registered at the Juhu police station in Bombay last month and later transferred to the EOW following a preliminary enquiry. The FIR names Shilpa Shetty Kundra, Raj Kundra and another unidentified person under IPC sections of cheating and forgery, in a case involving more than Rs. 10 crore.
According to the FIR, complainant Deepak Kothari (60), a Juhu resident and director in Lotus Capital Financial Services Ltd., alleged that between April 2015 and March 2016, the accused conspired with an intermediary, Rajesh Arya, to induce him into parting with Rs. 60.50 crore. The funds were routed into Best Deal TV Pvt. Ltd., a home shopping and e-retail company in which Shilpa reportedly held 87.61% shares. Initially projected as a Rs. 75 crore loan at 12% interest, the transaction was later restructured as an “investment” under a share subscription agreement to avoid taxation, with assurances of monthly returns and repayment of principal. Kothari reportedly transferred Rs. 31.95 crore in April 2015, and another Rs. 28.53 crore in September 2015 to the company’s HDFC Bank accounts.
In spite of a personal guarantee provided in April 2016, Shilpa Shetty resigned from the directorship in September the same year. In 2017, insolvency proceedings were initiated against Best Deal TV for defaulting on another agreement.
According to Kothari, repeated attempts to recover his funds failed, leading him to believe that the accused had “dishonestly used” his money for personal enrichment. Shilpa Shetty and her husband have denied the allegations. EOW is now investigating the money trail and the role of each accused.
Meanwhile, the complainant has pressed for preventive measures to ensure that the accused do not evade the process of law.
