Actor Shilpa Shetty Kundra, her husband and businessman Raj Kundra, along with an unidentified individual, have been booked by the Economic Offences Wing (EOW) in connection with an alleged Rs 60.48 crore fraud involving their now-defunct company, Best Deal TV Pvt Ltd.
The case stems from a complaint by Mumbai-based businessman Deepak Kothari over a loan-cum-investment deal that allegedly went sour.
The FIR, registered at Juhu police station under charges of cheating and forgery, was transferred to the EOW since the disputed amount exceeded Rs 10 crore. According to the complaint, Kothari — a 60-year-old resident of Juhu and director of Lotus Capital Financial Services, a non-banking financial company — was introduced to Shetty and Kundra in 2015 by Rajesh Arya.
Loan converted into 'investment'
The FIR, registered at Juhu police station under charges of cheating and forgery, was transferred to the EOW since the disputed amount exceeded Rs 10 crore.
According to the complaint accessed by TOI, Kothari — a 60-year-old resident of Juhu and director of Lotus Capital Financial Services, a non-banking financial company — was introduced to Shetty and Kundra in 2015 by Rajesh Arya.
At the time, the celebrity couple reportedly held 87.6% stake in Best Deal TV, a home shopping and online retail platform. The FIR states that the accused initially sought a Rs 75 crore loan at 12% interest, but later convinced Kothari to route the money as an “investment” to reduce tax liabilities, promising fixed monthly returns and repayment of the principal.
Kothari claims he transferred Rs 31.95 crore in April 2015 under a share subscription agreement, and an additional Rs 28.53 crore in September 2015 under a supplementary agreement.
In April 2016, Shetty allegedly provided a personal guarantee, but resigned as company director by September that year.
By 2017, Kothari discovered that insolvency proceedings had begun against Best Deal TV for defaulting on another deal. He says multiple recovery attempts since then have failed, with delays attributed to the COVID-19 pandemic.
Defence denies criminal wrongdoing
Prashant Patil, counsel for Shetty and Kundra, dismissed the allegations, calling them “purely civil in nature” and pointing out that the matter had been adjudicated by the NCLT Mumbai in October 2024, TOI further reported.
He added that the couple’s auditors had regularly provided the EOW with documents, including detailed cash flow records, and insisted there was “no element of criminality” in the dispute.
"My clients deny all the allegations which are purely civil in nature and have been adjudicated by the NCLT Mumbai on 04/10/2024...our auditors have submitted all the necessary supporting documents from time to time, as requested by the EOW, including detailed cash flow statements," he said.
The case stems from a complaint by Mumbai-based businessman Deepak Kothari over a loan-cum-investment deal that allegedly went sour.
The FIR, registered at Juhu police station under charges of cheating and forgery, was transferred to the EOW since the disputed amount exceeded Rs 10 crore. According to the complaint, Kothari — a 60-year-old resident of Juhu and director of Lotus Capital Financial Services, a non-banking financial company — was introduced to Shetty and Kundra in 2015 by Rajesh Arya.
Loan converted into 'investment'
The FIR, registered at Juhu police station under charges of cheating and forgery, was transferred to the EOW since the disputed amount exceeded Rs 10 crore.
According to the complaint accessed by TOI, Kothari — a 60-year-old resident of Juhu and director of Lotus Capital Financial Services, a non-banking financial company — was introduced to Shetty and Kundra in 2015 by Rajesh Arya.
At the time, the celebrity couple reportedly held 87.6% stake in Best Deal TV, a home shopping and online retail platform. The FIR states that the accused initially sought a Rs 75 crore loan at 12% interest, but later convinced Kothari to route the money as an “investment” to reduce tax liabilities, promising fixed monthly returns and repayment of the principal.
Kothari claims he transferred Rs 31.95 crore in April 2015 under a share subscription agreement, and an additional Rs 28.53 crore in September 2015 under a supplementary agreement.
In April 2016, Shetty allegedly provided a personal guarantee, but resigned as company director by September that year.
By 2017, Kothari discovered that insolvency proceedings had begun against Best Deal TV for defaulting on another deal. He says multiple recovery attempts since then have failed, with delays attributed to the COVID-19 pandemic.
Defence denies criminal wrongdoing
Prashant Patil, counsel for Shetty and Kundra, dismissed the allegations, calling them “purely civil in nature” and pointing out that the matter had been adjudicated by the NCLT Mumbai in October 2024, TOI further reported.
He added that the couple’s auditors had regularly provided the EOW with documents, including detailed cash flow records, and insisted there was “no element of criminality” in the dispute.
"My clients deny all the allegations which are purely civil in nature and have been adjudicated by the NCLT Mumbai on 04/10/2024...our auditors have submitted all the necessary supporting documents from time to time, as requested by the EOW, including detailed cash flow statements," he said.
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