Bollywood actor Shilpa Shetty and her husband, businessman Raj Kundra, have been booked by the Economic Offences Wing (EOW) of the Mumbai Police for allegedly defrauding a Mumbai-based businessman of Rs 60.48 crore in connection with a loan-cum-investment deal for their now-defunct company, Best Deal TV Pvt Ltd, according to reports.
The case was registered following a complaint by Deepak Kothari, 60, director of Lotus Capital Financial Services.
Kothari alleged that between 2015 and 2023, the couple, along with an associate, “ran a well-planned conspiracy” to obtain funds meant for business expansion but diverted them for personal expenses.
According to the complaint, Kothari was introduced to the couple by an agent, Rajesh Arya, in 2015, when Shetty and Kundra were directors of Best Deal TV and held over 87% shares.
Kothari claimed Arya initially sought a loan of Rs 75 crore at 12 per cent annual interest for the company, but later suggested routing it as an investment to avoid higher taxes.
“A meeting was held, and the deal was finalised with a promise that the money would be returned on time,” Kothari stated.
Following this, Kothari transferred around Rs 31.95 crore in April 2015 and another Rs 28.54 crore between July 2015 and March 2016. He also paid Rs 3.19 lakh as stamp duty.
In April 2016, Shetty allegedly provided a personal guarantee, but resigned as director a few months later in September.
Soon after, insolvency proceedings amounting to Rs 1.28 crore surfaced against the company, which Kothari claimed he was unaware of.
Despite repeated requests, the funds were not returned, Kothari alleged. He said the couple promised regular returns and repayment of the principal, but “used the money for personal purposes.”
The FIR was initially lodged at Juhu Police Station under charges of forgery and cheating but was transferred to the EOW due to the amount exceeding Rs 10 crore.
The accused have been booked under Sections 403 (dishonest misappropriation of property), 406 (criminal breach of trust) and 34 (common intention) of the Indian Penal Code.
The EOW is currently investigating the matter.
