Mumbai police to issue Look Out Circular against Shilpa Shetty, Raj Kundra in Rs 60 crore fraud case
PTC Web Desk: The Mumbai police have initiated the process of issuing a Look Out Circular (LoC) against actress Shilpa Shetty and her husband, businessman Raj Kundra, in connection with an alleged cheating case worth Rs 60.48 crore. Officials said the step was taken due to the couple’s frequent overseas travel, ensuring that the ongoing probe remains unaffected.
The Economic Offences Wing (EOW) registered the case on August 14 following a complaint filed by 60-year-old businessman Deepak Kothari, director of Lotus Capital Financial Services Ltd.
Kothari claimed that he was introduced to Kundra through a mutual acquaintance and was persuaded to invest in the now-defunct Best Deal TV Pvt. Ltd, owned by the couple. He alleged that Shetty and Kundra promised regular returns and repayment of the principal amount.
According to the complaint, Kothari transferred Rs 31.95 crore in April 2015 and another Rs 28.53 crore in September 2015 into the company’s bank accounts. However, despite repeated reminders, the amount was never repaid. Kothari further alleged that the money was diverted for personal use.
In 2016, Shetty stepped down as a director from the company, which later faced insolvency proceedings after allegedly defaulting on other investors as well.
Based on the complaint, the Mumbai police booked Shetty and Kundra under IPC Sections 403 (dishonest misappropriation of property), 406 (criminal breach of trust), and 34 (common intention).
On the other hand, the couple has strongly refuted the allegations. Their lawyer, Prashant Patil, issued a statement calling the complaint “baseless and malicious.” He clarified that the financial dealings in question were equity investments, not loans, and the company subsequently entered insolvency proceedings before the National Company Law Tribunal (NCLT).
“There is no element of criminality involved. All supporting financial documents, including cash flow statements, have been submitted to the authorities. The liquidation order of the company has also been shared with the police,” Patil stated.
While the police continue their investigation, the issuance of the LoC will restrict the couple’s international travel until the case progresses further.
- With inputs from agencies
