Shilpa Shetty, Raj Kundra in the dock: Businessman cites this reason for loan default in ₹60 crore fraud case

Bollywood actress Shilpa Shetty’s husband Raj Kundra has reportedly informed investigators that the 2016 demonetisation policy was the reason he could not repay a loan central to a fraud case. Kundra, who is facing a probe into allegations totalling approximately ₹60 crore, cited the ban on ₹500 and ₹1,000 currency notes as the cause of his financial difficulties, reported NDTV.

The case is being investigated by the Mumbai Police's Economic Offences Wing (EOW). It stems from a complaint lodged on 14 August by Deepak Kothari, a Mumbai-based businessman and director of Lotus Capital Financial Services.

Kothari alleges he was defrauded of nearly ₹60 crore in a loan-and-investment deal linked to Best Deal TV Private Limited, a now-defunct home shopping and online retail platform. Both Shetty and Kundra were formerly directors of the company.

Kothari claims that between 2015 and 2023, the couple dishonestly utilised the capital he provided, which was intended for the business’s growth, for their personal expenditure. The financial details specify that Kothari transferred an initial ₹31.95 crore in April 2015 under a shared subscription agreement, followed by a further ₹28.53 crore in September 2015, with the entire sum being deposited into Best Deal TV’s bank accounts.

While the money was initially agreed upon at an interest rate of 12%, Kothari alleges the couple later requested he treat the sum as an 'investment,' promising both monthly returns and the repayment of the principal amount. He later discovered that insolvency proceedings had commenced against Best Deal TV over claims the company had cheated another investor, leading to Shilpa Shetty subsequently stepping down from her director role.

Kothari maintains that his repeated efforts to recover the money failed and has accused Kundra and Shetty of dishonestly using his funds for personal gain.

The EOW’s investigation into the matter is ongoing.

First deposit ₹60 crore: HC tells Shilpa Shetty, Raj Kundra

On Wednesday, the Bombay High Court declared it will only consider allowing actress Shilpa Shetty and her husband, Raj Kundra, to travel internationally if they first deposit the full ₹60 crore sum involved in the cheating case against them.

The couple had recently filed a petition with the high court seeking the temporary suspension of the Look Out Circular (LOC) issued by the police, enabling them to travel abroad for both professional obligations and personal leisure.

During Wednesday's proceedings, a bench comprising Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad expressed strong reservations about granting permission for leisure trips, given the severity of the fraud and cheating allegations the pair face.

The couple's lawyer argued before the court that only one proposed journey—to Phuket—was for leisure, with all other foreign travel commitments being strictly professional.

The lawyer further emphasised that the couple has fully cooperated with the ongoing investigation, including attending all necessary questioning sessions.

In response, the high court bench pointed out that the couple’s existing cooperation with the probe was precisely why they had not yet been arrested, implying that the cooperation was already factored into their current non-custodial status.