Mumbai Police book Shilpa Shetty and Raj Kundra in cheating case

Reportedly, the Economic Offences Wing (EOW) of Mumbai Police, have booked actress Shilpa Shetty and her businessman husband Raj Kundra alongside another unidentified person for allegedly cheating a
City based businessman to the tune of whopping
Rs.60.48 crore in a
loan-cum-investment arrangement linked to their now-defunct company, Best Deal
TV Pvt Ltd.
The FIR, initially lodged at Juhu police station under various IPC sections for cheating and forgery, was reportedly transferred to the EOW as the sum involved exceeded
Rs 10 crore. Deepak Kothari, 60-year-old director of Lotus Capital Financial Services, a non-banking financial company was filed by 60-year-old Deepak Kothari, a Juhu resident and director of Lotus Capital Financial Services, a non-banking financial company, through his advocates Dr Yusuf Iqbal and Zain Shroff, and a Juhu resident had filed the complaint.

As per media reports, citing the FIR, Kothari was introduced to the Kundras by Rajesh Arya. At the time, Shilpa Shetty and Raj Kundra reportedly held 87.6 per cent shares in Best Deal TV, an online retail and home shopping platform.

The accused allegedly sought a Rs 75 crore loan at 12 per cent annual interest but later advised Kothari to route the amount as an ‘investment’ in a bid to avoid higher taxation. They allegedly assured him of fixed monthly returns along with repayment of the principal.

According to Kothari’s claim, he had made an UPI transfer payment of
Rs 31.95 crore in April 2015 under a share subscription agreement, followed by Rs 28.53 crore in September 2015 under a supplementary agreement.
That in April 2016, a personal guarantee was reportedly provided. However, the Shetty tendered their resignation as director in September 2016.
The complaint states that in 2017, Kothari discovered insolvency proceedings against Best Deal TV for defaulting on another agreement. Despite repeated follow-ups, amidst the COVID-19 pandemic, he claims the money was never returned.

It is Kothari’s further allegations that the transactions were misrepresented and his funds were diverted, placing him in a major financial mess.
However, Shilpa & Raj’s Legal Counsel blatantly deny the allegations.

While reacting to the development, Prashant Patil, legal counsel for Shetty and Kundra, denying the allegations. stated, that his clients, the Kundras deny all the allegations, purely civil in nature adjudicated by the NCLT Mumbai on 04/10/2024. There is no criminality involved. Patil further added that their auditors have provided all requested documents to the EOW, including detailed cash flow statements, and emphasised that the matter has already been legally settled in the appropriate forum.
The EOW is now conducting further investigation into the financial transactions, agreements and alleged diversion of funds.

News Edit KV Raman.