Mumbai Police have issued a Lookout Circular (LOC) against Bollywood actress Shilpa Shetty and her husband, businessman Raj Kundra, in connection with a Rs 60 crore fraud case. The action was taken by the Economic Offences Wing (EOW) owing to the couple’s frequent foreign travel, raising concerns they might evade investigation. The case centres on allegations of financial diversion linked to their now-defunct venture, Best Deal TV Pvt. Ltd.
The complaint was filed by Mumbai-based businessman Deepak Kothari, director of Lotus Capital Financial Services. According to Kothari, he was introduced to Shetty and Kundra by Rajesh Arya, after which the couple allegedly lured him into a loan-cum-investment arrangement. Initially, the couple is said to have sought a Rs 75 crore loan at 12 per cent interest, but later persuaded Kothari to restructure it as an ‘investment’ to reduce tax liability. They allegedly promised him assured monthly returns and eventual repayment of the principal.
Relying on these assurances, Kothari transferred Rs 31.95 crore in April 2015 under a share subscription agreement, followed by another Rs 28.53 crore in September 2015 via a supplementary agreement. The funds were deposited into Best Deal TV’s HDFC Bank accounts, a firm in which Shetty and Kundra reportedly held over 87 per cent stake at the time. However, just a year later, in September 2016, Shetty resigned as director, and by 2017, insolvency proceedings were initiated against the company for defaulting on another agreement.
Kothari alleged that repeated attempts to recover his investment through Rajesh Arya failed, compelling him to approach the police. An FIR has been registered at Juhu Police Station under Bharatiya Nyay Sanhita (BNS) sections 403 (dishonest misappropriation of property), 406 (criminal breach of trust), and 34 (common intention).
The couple’s legal troubles have been mounting. Earlier this year, another businessman, Prithviraj Kothari, managing director of Riddhi Siddhi Bullions, accused them of cheating an investor in a gold investment scheme. Raj Kundra, who was arrested in 2021 in connection with an adult content racket and later released on bail, is also facing a separate money laundering investigation linked to a Bitcoin fraud case.
The latest allegations have intensified scrutiny of the couple’s financial dealings, with investigators now probing whether investor funds were systematically siphoned off for personal use over several years.
