Lookout Circular Issued Against Shilpa Shetty, Husband In Rs 60 Crore Fraud Case
The couple is accused of cheating a businessman out of approximately Rs 60 crore: Reports
MUMBAI: Mumbai Police has issued a lookout circular against Bollywood actress Shilpa Shetty and her husband, businessman Raj Kundra, in connection with a multi-crore fraud case. The couple is accused of cheating a businessman out of approximately Rs 60 crore.
A senior police official explained that the decision was necessitated by the couple’s frequent international travels, which raised concerns about their potential to evade the investigation. The issuance of the Lookout Circular (LoC) is aimed at preventing them from leaving the country and ensuring that the ongoing investigation proceeds without any hindrance.
On August 14, the Economic Offences Wing (EOW) of the Mumbai Police registered a case against Shilpa Shetty, Raj Kundra, and an unidentified individual for allegedly defrauding businessman Deepak Kothari of Rs 60.48 crore.
According to the complaint filed by Mr. Kothari, Shilpa Shetty and Raj Kundra misled the businessman by convincing him to invest nearly Rs 60 crore under the pretext of expanding their business operations. However, instead of using the funds for business purposes, they allegedly diverted the money for their personal expenses, he claimed.
Kothari stated that he was introduced to Shilpa Shetty and Raj Kundra by Rajesh Arya, at a time when the couple held nearly 88 per cent of the shares in Best Deal TV. According to Kothari, the couple initially sought a loan of Rs 75 crore from him, promising a 12 per cent interest rate. Later, they allegedly persuaded him to restructure the loan as an “investment” to help save on taxes.
Kothari reportedly transferred Rs 31.95 crore in April 2015 and Rs 28.53 crore in September 2015 to Best Deal TV’s bank account under share subscription agreements. Shilpa Shetty resigned as director in 2016, and insolvency proceedings began in 2017. After failed attempts to recover his money through Rajesh Arya, Kothari filed a police complaint. An FIR was registered under sections 403, 406, and 34 of the Bharatiya Nyaya Sanhita.
Advocate Prashant Patil, on behalf of Shilpa Shetty and Raj Kundra, issued a statement denying all allegations against the couple. He described the disputed payment as an “old transaction” and explained that the company later faced financial difficulties, leading to a prolonged legal battle at the National Company Law Tribunal (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 investment agreement in question is purely in the nature of an equity investment,” the lawyer said in the statement.