Bollywood actor Shilpa Shetty, and her husband, businessman Raj Kundra, have been charged over defrauding a businessman of 60 crore rupees.
Businessman Deepak Kothari alleged that the couple spent the money on personal expenses.
The probe has been handed over to the Economic Offences Wing (EOW) as the amount involved exceeded 10 crore rupees.
A fresh case has been filed against Bollywood actor Shilpa Shetty, and her husband, businessman Raj Kundra, over allegedly defrauding a Mumbai-based businessman of 60 crore rupees. As per media reports, the case pertains to an alleged loan-cum-investment deal for the couple's now-defunct Best Deal TV Pvt Ltd.
According to a report by NDTV, businessman Deepak Kothari has alleged that he had given Shetty and Kundra 60.48 crore rupees for business expansion between 2015-2023. However, he alleged that the couple spent the money on personal expenses.
Shetty, Kundra Deny Claim
Taking cognisance of the development, Shilpa Shetty and Raj Kundra's Lawyer, Advocate Prashant Patil, said, "My clients have been informed by a certain segment of electronic and print media that there is an alleged case registered against my clients at the Economic Offence Wing (EOW), Mumbai. At the outset, my clients deny all the allegations against, which are purely civil in nature and have been adjudicated by the NCLT Mumbai on 04/10/2024."
"This is an old transaction, wherein the company went into financial distress and eventually got entangled in a long legal battle at the NCLT. There is no criminality involved, and our auditors have submitted all the necessary supporting documents from time to time, as requested by the EOW, including detailed cash flow statements", the lawyer added.
Sharing further details, Advocate Patil said, "The investment agreement in question is purely in the nature of an equity investment. The company has already received a liquidation order, which has also been placed before the police department. The concerned Charter accounts have visited the police station over 15 times in the last one year, with all the evidence supporting the claims of my clients . This is nothing but a baseless and malicious case aimed at maligning our clients, and appropriate action is being initiated from our side against the perpetrators."
What Did The Businessman Say?
Based on the complaint lodged by Kothari, the Director of Lotus Capital Financial Services, it has been reported that one Rajesh Arya introduced him to the couple, who were then directors of Best Deal TV Pvt Ltd, a home shopping and online retail platform.
The probe has been handed over to the Economic Offences Wing (EOW) as the amount involved exceeded 10 crore rupees.
The businessman claimed that they initially sought a loan of 75 crore rupees at 12 per cent interest. Kothari was later persuaded to channel the funds in the form of an "investment" to avoid higher tax rates.
Following their assurances, Kothari claimed he transferred 31.95 crore rupees in April 2015 under a share subscription agreement, followed by another Rs 28.53 crore under a supplementary agreement in September 2015 to the company's HDFC bank account.
However, the situation turned around when Shilpa Shetty resigned as the director of Best Deal TV in September 2016, and the next year, insolvency proceedings were initiated against the company for defaulting on another agreement.
Kothari alleged that repeated attempts to recover his money through the mediator, Rajesh Arya, failed. He eventually filed a complaint, concluding that the actor and her husband "dishonestly used" his funds for personal benefits and cheated him.
The Other Cases Involving Shetty And Kundra
In a similar case earlier this year, the couple was charged with defrauding an investor in a gold scheme. The complaint was filed by Prithviraj Kothari, the managing director of Riddhi Siddhi Bullions.
Kundra was previously arrested by Mumbai Police in 2021 in an adult content case and later granted bail. The Enforcement Directorate (ED) summoned businessman Kundra for questioning in a money laundering case linked to the alleged illegal distribution of pornographic movies.
Kundra said that he was "fully complying" with the ongoing investigation that has been unfolding for the last four years.
He is also under scrutiny in a separate money laundering investigation related to Bitcoin fraud.
