Celebrity Couple Deny Allegations, Call Case a Malicious Attempt to Tarnish Their Reputation.
Bollywood star Shilpa Shetty and her businessman husband Raj Kundra have strongly denied allegations of a ₹60 crore fraud filed against them by businessman Deepak Kothari. The couple has termed the case “baseless and malicious,” insisting that “no criminality is involved” and that it is an attempt to damage their public image.
Allegations in the ₹60 Crore Fraud Case
- Complainant: Deepak Kothari, director of Lotus Capital Financial Services Ltd.
- Claim: The couple allegedly took money meant for expanding their business but diverted it for personal use.
- Timeline of Funds:
- April 2015 – ₹31.95 crore transferred under a share subscription agreement.
- September 2015 – ₹28.53 crore transferred under a supplementary agreement.
- Purpose: Initially pitched as a ₹75 crore loan for their company, Best Deal TV Private Limited (a shopping TV channel) at 12% interest. Later, the couple allegedly requested it as an “investment” promising returns and repayment.
- Complaint: Repeated attempts to recover funds reportedly failed, with the money “dishonestly used.”
The Economic Offences Wing (EOW) of Mumbai Police has registered an FIR and is currently investigating.
Couple’s Legal Response
Advocate Prashant Patil, representing Shetty and Kundra, issued a detailed statement:
- The allegations are purely civil in nature and have already been adjudicated by the NCLT Mumbai on 4 October 2024.
- The company faced financial distress and entered a prolonged legal battle at the NCLT.
- No criminal wrongdoing exists; auditors have submitted all required documents, including detailed cash flow statements.
- The transaction in question was an equity investment, not a loan.
- The company has received a liquidation order, presented to the police.
- Chartered accountants have visited the police station over 15 times in the past year to provide evidence.
Patil emphasized:
“This is nothing but a baseless and malicious case aimed at maligning our clients, and appropriate legal action is being initiated against the perpetrators.”
Previous Controversies
Raj Kundra has faced legal scrutiny in recent years:
- 2024: His premises were searched by the Enforcement Directorate in a money laundering case.
- 2021: Arrested in a case related to producing and streaming pornographic films; later granted bail.
The ongoing investigation will determine the next steps, but the couple maintains their innocence, framing the allegations as an attempt to target them despite documented legal and financial proceedings.
