Shilpa Shetty, Raj Kundra booked in ₹60cr cheating case
What's the story
Bollywood actor Shilpa Shetty Kundra and her businessman husband Raj Kundra have been booked by the Economic Offences Wing (EOW) of the Mumbai Police. The duo is accused of cheating a city-based businessman, Deepak Kothari, to the tune of ₹60.48 crore in a loan-cum-investment deal linked to their now-defunct firm Best Deal TV Pvt Ltd. The FIR was filed at the Juhu Police Station under various IPC sections for cheating and breach of trust.
Allegations
Allegations made by Kothari
Kothari, a 60-year-old Juhu resident and director of Lotus Capital Financial Services, a non-banking financial company, lodged the complaint through his advocates Dr. Yusuf Iqbal and Zain Shroff. He alleged that the Kundras sought a ₹75 crore loan at 12% annual interest but later asked him to route it as an "investment" to avoid higher taxation. They reportedly promised fixed monthly returns along with repayment of the principal amount.
Fund diversion
Funds were diverted, causing financial loss: Complaint
Kothari claims he transferred ₹31.95 crore in April 2015 under a share subscription agreement and ₹28.53 crore in September 2015 under a supplementary agreement. However, despite these transactions, he discovered insolvency proceedings against Best Deal TV in 2017 for defaulting on another agreement. Kothari alleged that the transactions were misrepresented and his funds were diverted, causing him major financial loss.
Denial
Legal counsel denies allegations
Prashant Patil, the legal counsel for Shetty Kundra and Kundra, has denied all allegations. He told TOI, "My clients deny all the allegations which are purely civil in nature and have been adjudicated by the NCLT Mumbai. There is no criminality involved." Patil further added that their auditors have given all documents sought by the EOW, including cash flow statements, and emphasized that this matter has already been settled in the appropriate forum.