Raj Kundra Cites Demonetisation for Loan Default in ₹60 Crore Fraud Case; Bombay HC Restricts Travel
Mumbai businessman Deepak Kothari accuses Kundra and Shilpa Shetty of misusing funds meant for Best Deal TV; Bombay High Court orders ₹60 crore deposit for overseas travel permission and refuses to stay Look Out Circular
Businessman Raj Kundra has told investigators that he was unable to repay a loan in 2016 after the Indian government implemented demonetisation, which banned ₹500 and ₹1,000 currency notes, according to an NDTV report. Kundra, who is married to actor Shilpa Shetty, is currently under investigation in a ₹60 crore fraud case.
The case was registered on August 14, following a complaint by Mumbai-based businessman Deepak Kothari. Kothari accused the couple of cheating him out of nearly ₹60 crore in a loan-cum-investment deal linked to Best Deal TV Private Limited, a home shopping and online retail platform that is now defunct. Both Shetty and Kundra were directors of the company.
The Economic Offences Wing (EOW) of the Mumbai Police is probing the matter based on Kothari’s complaint. He alleges that between 2015 and 2023, Shetty and Kundra misused the funds he had provided to grow the business and instead spent the money for their personal expenses.
According to Kothari, he transferred ₹31.95 crore in April 2015 under a share subscription agreement and an additional ₹28.53 crore in September 2015 under a supplementary agreement. However, he later discovered that insolvency proceedings had been initiated against Best Deal TV for allegedly cheating another investor. Following this, Shetty stepped down as director of the company.
The agreed interest rate for the loan was 12 percent. Later, the couple reportedly asked Kothari to treat the amount as an “investment” rather than a loan, promising monthly returns and repayment of the principal. All the funds were deposited into Best Deal TV’s bank accounts.
Kothari claims that repeated attempts to recover his money failed, accusing the couple of dishonestly using the funds for personal benefit.
Meanwhile, the Bombay High Court on Wednesday ordered Shilpa Shetty and Raj Kundra to deposit ₹60 crore if they wish to travel abroad to places like Los Angeles or any other foreign location. The court denied permission for their travel and refused to stay the Look Out Circular (LOC) issued against them.
The couple had filed a plea seeking to quash the LOC connected to the FIR for the alleged ₹60 crore fraud. The court has adjourned the hearing to October 14, according to LiveLaw.