Businessman Raj Kundra, husband of actor Shilpa Shetty, was granted bail on Friday by a special court in connection with the alleged Rs 150-crore Bitcoin “Ponzi” scheme being investigated by the Enforcement Directorate (ED). The court allowed him relief after taking cognisance of the chargesheet filed in the case, directing Kundra to furnish a surety bond of Rs 1 lakh and mandating that he obtain prior permission from the court before travelling abroad.
Kundra is among 18 individuals named as accused in the ED’s probe under the Prevention of Money Laundering Act (PMLA). He appeared before the court following summons issued after the filing of the chargesheet last month. After the hearing, he briefly addressed reporters outside the courtroom, stating that he had faith in the judicial process but refrained from making detailed remarks, adding humorously that both his wife and his lawyer had advised him against speaking publicly about the matter.
Earlier, the special court had issued summons to Kundra and Dubai-based businessman Rajesh Satija after acknowledging the ED’s chargesheet. Both individuals were directed to appear before the court on January 19. Kundra and Satija were included as accused through a supplementary chargesheet submitted in September last year. Investigators had not arrested Kundra during the course of the probe, but he was required to formally seek bail once the court took cognisance of the allegations.
According to the ED, Kundra allegedly received Rs 6.5 crore from Amit Bhardwaj, identified by investigators as the alleged mastermind behind the Gain Bitcoin scam. The agency claims that the funds were converted into 285 Bitcoins intended for establishing a Bitcoin mining facility in Ukraine, with the cryptocurrency reportedly meant to be transferred to an Israeli national. The ED has further alleged that despite repeated opportunities since 2018, Kundra has not disclosed the digital wallet addresses where the Bitcoins were transferred.
During the hearing, Kundra’s counsel, advocate Prashant Patil, challenged the ED’s valuation of the alleged proceeds of crime. He argued that the agency initially assessed the value of 285 Bitcoins in July 2017 at approximately USD 1 million, or around Rs 6.6 crore, but later relied on the much higher April 2024 market valuation of nearly Rs 52 lakh per Bitcoin to calculate an alleged amount close to Rs 150 crore. The defence contended that such a method amounted to selective valuation without any legal basis and unfairly inflated the alleged financial liability.
Patil maintained that the legally relevant valuation date should be July 2017, when the alleged transaction occurred, rather than a later date chosen based on market fluctuations. He further argued that even if the prosecution’s claims were accepted entirely, the maximum value of attachable assets would be limited to approximately Rs 6.6 crore, making the attachment of properties worth Rs 150 crore disproportionate and legally unsustainable.
The Enforcement Directorate opposed Kundra’s bail application, but the court ultimately granted him relief subject to conditions. Following the order, Kundra is reportedly considering approaching the High Court to challenge the summons issued against him as the legal proceedings in the case continue.
