Case Filed Against Shilpa Shetty, Raj Kundra Over Alleged ₹60 Crore Fraud
Case Filed Against Shilpa Shetty, Raj Kundra Over Alleged ₹60 Crore Fraud
Businessman alleges funds for business expansion diverted to personal use; couple denies charges
Mumbai Police’s Economic Offences Wing (EOW) is investigating actor Shilpa Shetty and her husband, businessman Raj Kundra, following allegations by industrialist Deepak Kothari that they defrauded him of ₹60.4 crore in a loan-cum-investment deal linked to their now-defunct venture, Best Deal TV Pvt Ltd.
According to the FIR, Kothari stated that in 2015, he was introduced to Shetty and Kundra by mediator Rajesh Arya, who sought a ₹75 crore loan at 12% annual interest for the couple’s home-shopping platform. To avoid higher taxes, Arya allegedly suggested routing the funds as an “investment”. Kothari claims he transferred ₹31.9 crore in April 2015 under a share subscription agreement and another ₹28.53 crore in September 2015 through a supplementary agreement.
At the time, Shetty held more than 87% shares in the company, and both she and Kundra served as directors. Kothari alleged that between 2015 and 2023, the couple misappropriated the funds for personal expenses instead of business expansion. In April 2016, Shetty allegedly provided a guarantee, but resigned as director in September that year. Soon after, an insolvency case of ₹1.28 crore surfaced against the company, of which Kothari says he was unaware. His repeated attempts to recover the money reportedly failed.
Initially lodged at Juhu Police Station for forgery and cheating, the case was later transferred to the EOW as the amount exceeded ₹10 crore. Police have registered offences under sections of the Indian Penal Code relating to criminal breach of trust, cheating, and criminal conspiracy.
In a statement issued on August 14, Shetty and Kundra’s lawyer strongly denied the allegations, calling them “baseless and malicious” and noting that the matter had already been adjudicated by the National Company Law Tribunal (NCLT) in Mumbai on October 4, 2024. “This is an old transaction wherein the company went into financial distress and got entangled in a long legal battle. This complaint is nothing but an attempt to malign our clients. Appropriate legal action is being initiated,” the statement read.
Best Deal TV, launched in 2015, marketed lifestyle products through television and online platforms but shut operations within two years amid mounting financial challenges.
