Shilpa Shetty and Raj Kundra deny cheating charges: 'An old transaction, no criminality involved'

Bollywood actor Shilpa Shetty Kundra and her businessman husband Raj Kundra are back in the spotlight amid fresh legal trouble. The Economic Offences Wing (EOW) of Mumbai has booked the couple, along with an unidentified individual, for allegedly defrauding a local businessman of over Rs 60 crore in a loan-cum-investment deal linked to their now-defunct company, Best Deal TV Pvt Ltd, according to IANS. The case has stirred media attention, but the couple’s legal team has strongly refuted the allegations.

What did Shilpa Shetty and Raj Kundra's lawyer say?
Addressing the allegations, Raj Kundra and Shilpa Shetty’s lawyer, Advocate Prashant Patil, stated that the couple denies all claims, which are purely civil in nature and were already adjudicated by the NCLT Mumbai on 04/10/2024. He explained that the transaction is old, and the company faced financial distress, leading to a prolonged legal battle at the NCLT.

There is no criminality involved, and the auditors have submitted all necessary documents, including detailed cash flow statements, to the EOW. The investment was an equity investment, and the company has received a liquidation order, which has been shared with the police. The lawyer called the case baseless and malicious, aimed at maligning the clients, and said appropriate action will be taken against the perpetrators.

What is the case about?
IANS, citing Mumbai Police, reported that businessman Deepak Kothari has accused Shilpa Shetty and Raj Kundra of jointly cheating him of more than Rs 60 crore. It further reported that the money, provided between 2015 and 2023 ostensibly for business expansion, was allegedly diverted for personal use. The investigation has now been taken over by the EOW after the initial complaint was registered at Juhu police station. Since the amount involved exceeds Rs 10 crore, the case was escalated, with a preliminary enquiry confirming grounds for an FIR.

Kothari, a Juhu resident and director of Lotus Capital Financial Services, told IANS he was introduced to the couple by Rajesh Arya. At the time, Shilpa Shetty and Raj Kundra held 87.6% of Best Deal TV Pvt Ltd. The couple allegedly sought a Rs 75 crore loan at 12% interest but convinced Kothari to provide it as an “investment,” promising monthly returns and principal repayment. Kothari claims Rs 31.9 crore was transferred in April 2015, followed by Rs 28.53 crore in September 2015. Shilpa resigned as director in September 2016, despite earlier giving a personal guarantee. The company entered bankruptcy in 2017, and investigations are ongoing.