Raj Kundra summoned by EOW in ₹60.48 crore investment fraud, appearance postponed to Sept 15

Raj Kundra, husband of Bollywood actress Shilpa Shetty, has been summoned by the Economic Offences Wing (EOW) in connection with a ₹60.48 crore investment fraud, Mumbai Police said.

His initial appearance on September 10 was postponed to September 15, and a Lookout Circular (LoC) has been issued to prevent the couple from leaving India.

The fraud surfaced after Deepak Kothari, a 60-year-old Mumbai-based businessman and director of Lotus Capital Financial Services, filed a complaint, alleging that between 2015 and 2023, Shetty and Kundra misused the funds he had provided for personal gains, a news report by Hindustan Times said.

Details about the fraud

The FIR registered in Juhu police station on August 13 stated that Deepak Kothari was introduced to Raj Kundra through a mutual acquaintance and was told that the couple held nearly 88% shares in Best Deal TV, a home-shopping and online retail platform.

While Kundra initially sought a loan of ₹75 crore at 12% annual interest, Kothari alleged that he was later persuaded to treat the amount as an investment under the promise of better returns and also to avoid taxation.

Kothari said in his complaint that he transferred the entire money in portions through 2015, but soon discovered that the company was facing insolvency proceedings for allegedly cheating another investor.

Shilpa Shetty resigned as director in 2016. Later, Kothari said that when he demanded Kundra initiate the repayments, he continued delaying the process, citing the Covid-19 pandemic.

The EOW, after a preliminary inquiry, found that the complainant’s funds had indeed been misused. Shetty, Kundra, and an unidentified associate were booked under IPC sections 403 (dishonest misappropriation of property), 406 (criminal breach of trust), and 34 (common intention).

As per reports, the Mumbai police have also summoned the auditor who reviewed the firm’s accounts before liquidation proceedings were initiated at the National Company Law Tribunal (NCLT). Investigators are now tracking the money trail to determine how the funds were utilised.

Shilpa Shetty's ‘Bastian’ restaurant in Bandra shut down amid legal battle

Shilpa Shetty's upscale Mumbai restaurant, Bastian Bandra, was shut down last Thursday, September 4, shortly after she and her husband, Raj Kundra, were labelled with serious allegations of cheating Kothari.

Even though the Bollywood actress did not connect the restaurant’s closure to the ongoing legal dispute, the timing has sparked speculation of the incidents being connected as the couple battles a case involving their now-defunct home shopping venture.

Shilpa Shetty clarified in a farewell post that while Bastian Bandra is shutting down, the brand will continue operations through its second outlet, Bastian At The Top, located on the 48th floor of the Kohinoor Square building in Dadar West in Mumbai.