Shilpa Shetty, Raj Kundra Face ₹0.6B Fraud Probe by EOW

The Economic Offences Wing (EOW) of the Mumbai Police has taken serious steps against Bollywood actress Shilpa Shetty and her businessman husband Raj Kundra by issuing a Look Out Circular (LOC) against them. The couple is accused of allegedly defrauding a businessman of more than ₹0.6 billion.

A senior police official confirmed that the authorities had been reviewing the travel records of the couple and decided to move forward with the LOC, which means the duo may not be allowed to leave the country while the investigation is ongoing.

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Allegations by Businessman Deepak Kothari

Businessman Deepak Kothari has alleged that Shilpa Shetty and Raj Kundra conspired to cheat him between 2015 and 2023. According to Kothari, he had invested funds expecting them to be used for business expansion, but instead, these funds were allegedly diverted for personal use by the couple.

Kothari stated that he was first approached in 2015 by an agent named Rajesh Arya. Arya reportedly asked for a loan of ₹0.75 billion at 12% annual interest for a company called Best Deal TV Pvt Ltd, which was linked to Shilpa Shetty and Raj Kundra.

How the Money Changed Hands

According to Kothari’s claims, what began as a loan eventually turned into an “investment” arrangement. The payments made by Kothari are as follows:

• April 2015: Kothari transferred ₹319.5 million.

• July 2015 – March 2016: An additional ₹285.4 million was paid.

In total, Kothari says he handed over more than ₹0.604 billion, not including stamp duty charges.

Shilpa Shetty’s Exit and Insolvency Issues

Kothari further alleged that in April 2016, Shilpa Shetty gave him a personal guarantee. However, by September of the same year, she resigned as a director of Best Deal TV. Soon after, it was revealed that the company was facing insolvency proceedings worth ₹12.8 million, a fact that Kothari claims was not disclosed to him.

When Kothari demanded repayment, he alleges that Shilpa and Raj avoided the issue. He accused the couple and their associates of running a well-planned conspiracy to cheat him.

The Surprise Business Partnership in 2015

Back in 2015, Bollywood fans were surprised when Shilpa Shetty reunited with former co-star Akshay Kumar for a business venture. Along with Raj Kundra, they launched Best Deal TV, which was promoted as India’s first celebrity-driven teleshopping channel.

The idea behind this venture was explained by the founders:

• Akshay Kumar said the aim was for celebrities to co-own products and sell them through the channel.

• Raj Kundra highlighted that the channel would focus on lifestyle, health, fashion, and beauty.

Actress Sonakshi Sinha was among the first celebrities to join, introducing her own product line on the channel.

Despite past differences between Akshay and Shilpa, both stars assured the media that they had put old conflicts aside and were fully focused on the business. Shilpa praised Akshay’s broad appeal, while Akshay described the venture as “exciting and futuristic.”

Raj Kundra and ED Investigations

The case against Raj Kundra has already attracted attention from other authorities. Earlier, the Enforcement Directorate (ED) had raided Raj Kundra’s residence as part of a money laundering investigation. Reports suggest that some of Kundra’s assets and properties, worth over ₹1 billion, were seized by the ED.

Closure of Shilpa Shetty’s Bandra Restaurant

Adding to the couple’s current challenges, Shilpa Shetty recently announced the closure of her popular Bandra restaurant, Bastian. In an Instagram post, she called it “the end of an era” and invited patrons for a final farewell event.

Ranjit Bindra, CEO of Bastian Hospitality, clarified that the closure does not mean the end of the brand. The Bandra outlet will be replaced by Ammakai, a South Indian specialty restaurant, while a new Bastian Beach Club is scheduled to open in Juhu by mid-October.

Shilpa also posted a video to clear rumors linking the restaurant closure to the fraud allegations. She reassured fans that the Bastian brand is expanding, not shutting down, and that new ventures are keeping the legacy alive.

Summary of Allegations and Investigations

To summarize:

• Deepak Kothari claims to have invested more than ₹0.6 billion in Best Deal TV, expecting it to be used for business growth.

• Kothari alleges that funds were diverted for personal use and that Shilpa Shetty and Raj Kundra avoided repayment.

• Shilpa Shetty had resigned as a director in 2016, after providing a personal guarantee.

• The couple is now under scrutiny by Mumbai Police’s EOW, which has issued a Look Out Circular to monitor their movements.

• Raj Kundra is also facing money laundering investigations by the ED, with assets seized.

• Shilpa Shetty’s restaurant Bastian in Bandra is closing, but the brand will continue through new ventures.

Context of Celebrity Business Ventures

This case highlights the complexities that can arise when celebrities enter business ventures. While celebrities bring attention and trust to their projects, disputes can occur if transparency and proper financial management are not maintained. The allegations by Kothari suggest that even high-profile ventures can face serious financial controversies.

The issuance of the Look Out Circular (LOC) is a significant step in the investigation. It ensures that Shilpa Shetty and Raj Kundra will remain within India while the authorities continue their probe. The case will likely unfold over the coming months, with legal proceedings providing more clarity on the claims made by Deepak Kothari.

Meanwhile, fans and the general public are closely watching developments, especially since both Shilpa Shetty and Raj Kundra are well-known figures in Bollywood and business circles. The closure of Bastian and ongoing legal troubles have added to public interest in the couple’s professional and personal lives.

The Shilpa Shetty-Raj Kundra fraud case underscores how business and celebrity fame can intersect, sometimes leading to legal complications. While the couple continues to expand their business ventures, including the Bastian brand, the allegations of financial misconduct by Deepak Kothari will be closely examined by the authorities. The coming months will reveal the outcomes of these investigations and their impact on the celebrity couple’s business and public image.