Mumbai Police Involve Shilpa Shetty, Raj Kundra in Fraud Case

Mumbai, Aug 14 (PTI) — The Mumbai Police have initiated legal proceedings against actor Shilpa Shetty and her husband Raj Kundra in response to allegations of defrauding a businessman of Rs 60.4 crore. This purportedly relates to a loan-cum-investment arrangement with their now-dissolved company, Best Deal TV Private Limited, as confirmed by officials on Thursday.

A representative attorney for Shetty and Kundra rebutted the claims, characterizing the case as "baseless and malicious" with the intention of tarnishing their reputations. The lawyer indicated that decisive measures are being taken against those responsible for these accusations.

Deepak Kothari, a 60-year-old businessman based in Juhu and director of the non-banking financial entity Lotus Capital Finance Services, detailed in his police complaint how he became acquainted with Raj Kundra and Shilpa Shetty through an intermediary named Rajesh Arya, according to an official source.

Kundra and Shetty were serving as directors of Best Deal TV Private Limited, a platform specializing in home shopping and online retail. Through Arya, they initiated a request for a Rs 75 crore loan but purportedly reframed it as an investment to mitigate taxation implications, the complaint alleges.

The complaint further elaborates on an assurance given about receiving monthly returns and full repayment of the principal. As per the FIR, Kothari stated he disbursed Rs 31.9 crore in April 2015 through a share subscription agreement, followed by another Rs 28.53 crore under a supplementary agreement in September 2015.

The businessman asserted that his financial involvement of Rs 60.4 crore was provided for business expansion across 2015 to 2023. After delivering a guarantee in April 2016, Shetty stepped down as director by September 2016, Kothari's complaint indicated. He later realized that the company was facing insolvency proceedings starting in 2017 due to defaults on another agreement.

Kothari has accused the involved parties of redirecting the financing meant for business purposes into personal use. Consequently, he filed an official complaint with the Mumbai Police against the actor, her spouse, and other unidentified associates.

Upon Kothari's approach, a case was formally registered against Shetty and Kundra on Wednesday at Juhu Police Station, which was subsequently transferred to the Economic Offences Wing (EOW) of Mumbai Police for in-depth investigation, an official stated.

In a statement released Thursday, the lawyer representing Shetty and Kundra insisted that the allegations are entirely civil in nature and have been addressed by the NCLT (National Company Law Tribunal) Mumbai as of October 4, 2024.

"This pertains to an old transaction where the company suffered financial hardship, leading to protracted legal challenges at the NCLT," the statement disclosed. "No criminal activities are involved, and our auditors have consistently provided necessary documentation and detailed cash flow statements as requested by the EOW."

The statement also clarified that the disputed investment agreement is purely an equity transaction. Furthermore, it was noted that a liquidation order for the company has been communicated to the relevant police department.

"The claims are nothing but unfounded and malicious attempts to defame our clients. We are pursuing appropriate legal action against the originators of this case," concluded the attorney.

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