By Kashifa Wisal
Raj Kundra, businessman and husband of actor Shilpa Shetty, has been summoned by the Economic Offences Wing (EOW) of the Mumbai Police in connection with a ₹60.48 crore investment fraud case. Although scheduled to appear on September 10, Kundra requested more time, and the EOW rescheduled his appearance to September 15. A Lookout Circular (LoC) has been issued to restrict Kundra and Shetty from leaving the country.
The case originated from a complaint by Deepak Kothari, a 60-year-old businessman and director of Lotus Capital Financial Services. He alleged that between 2015 and 2023, funds provided to Kundra and Shetty for business purposes were diverted for personal use. The complaint led to the registration of an FIR at the Juhu police station on August 13.
Kothari stated that he was introduced to Kundra through a mutual contact and was informed that the couple held nearly 88% shares in Best Deal TV, a home shopping and online retail company. Initially, Kundra reportedly sought a loan of ₹75 crore with a 12% annual return. Kothari claimed that he was later convinced to treat the amount as an investment with the promise of higher returns and to avoid tax liabilities.
According to the complaint, Kothari transferred funds in parts during 2015. He later discovered that Best Deal TV was facing insolvency proceedings following complaints by another investor. Shetty resigned as director of the company in 2016. When Kothari began seeking repayment, Kundra allegedly delayed, citing the pandemic.
Following a preliminary inquiry, the EOW found evidence suggesting misuse of funds. Kundra, Shetty, and an unidentified associate have been booked under Indian Penal Code sections 403 (dishonest misappropriation of property), 406 (criminal breach of trust), and 34 (acts done by several persons in furtherance of common intention). Investigators are tracing the financial transactions to determine the end use of the funds.
The Mumbai Police have also summoned the auditor who examined the company’s accounts before liquidation proceedings began at the National Company Law Tribunal (NCLT).
Meanwhile, Shilpa Shetty’s Bandra-based restaurant, Bastian, closed operations on September 4. While no formal link has been confirmed, the timing coincides with the developments in the case.
Kundra and Shetty’s legal representative, Prashant Patil, denied the allegations. He stated that the dispute is civil in nature and had already been addressed by the NCLT in October 2024. He added that all relevant documents have been submitted and called the case an attempt to harm the clients’ reputation.