Mumbai Police’s Economic Offences Wing has added cheating charges in the Rs 60 crore fraud case involving Shilpa Shetty and Raj Kundra. The couple has denied all allegations, saying the matter is sub judice before the Bombay High Court.
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MUMBAI: Businessman Raj Kundra and his actor-wife Shilpa Shetty have been formally charged with cheating in connection with a Rs 60 crore fraud case, intensifying their legal troubles. The Mumbai Police’s Economic Offences Wing (EOW) has invoked Section 420 of the Indian Penal Code (IPC) against the celebrity couple, in addition to the earlier charge of criminal breach of trust under Section 406.
New Charges
According to officials, the case was initially registered under IPC Section 406. Following further investigation, Section 420 (cheating and dishonestly inducing delivery of property) has now been added. If convicted under Section 420, the accused could face up to seven years of imprisonment along with a fine.
The FIR was filed under the IPC as the complaint predates the implementation of the Bharatiya Nyaya Sanhita (BNS), which came into force on July 1, 2024.
Details of the Rs 60 Crore Fraud Case
The case is based on a complaint by Deepak Kothari, a 60-year-old Mumbai-based businessman and director of Lotus Capital Financial Services. Kothari has alleged that he was duped of Rs 60.4 crore in a loan-cum-investment deal linked to the now-defunct company Best Deal TV Private Limited, where Raj Kundra and Shilpa Shetty were directors.
According to the complaint, the funds were taken on the pretext of business expansion but were allegedly diverted for personal use. The EOW is currently probing the money trail and has already recorded statements from both Kundra and Shetty.
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Raj Kundra Denies Allegations
Amid reports of the new charges, Raj Kundra took to social media to strongly deny all allegations. Calling them “baseless and motivated,” he said the matter is already under judicial consideration.
“We categorically deny the baseless and motivated allegations being circulated. The issues sought to be raised are being given a criminal colour without any lawful basis,”
Kundra stated.
He further added,
“A quashing petition has already been filed before the Hon’ble High Court and is pending adjudication. Having fully cooperated with the investigation, we are sanguine that justice will prevail.”
Shilpa Shetty also shared the same statement on her Instagram story.
High Court and Look Out Circular
As part of the investigation, a Look Out Circular (LOC) was issued against Raj Kundra and Shilpa Shetty to prevent them from travelling abroad. The couple later approached the Bombay High Court seeking suspension of the LOC.
The High Court directed them to deposit Rs 60 crore or furnish a bank guarantee of the same amount, linking the condition to their plea for relief from travel restrictions.
According to statements issued by the complainant’s lawyers, the Enforcement Directorate (ED) may also be approached to investigate the alleged money laundering angle under the Prevention of Money Laundering Act (PMLA). This could include the attachment of assets if sufficient evidence is found.
Despite the fresh charges, Raj Kundra and Shilpa Shetty continue to maintain that there has been no wrongdoing on their part. Their legal team has reportedly argued that the dispute is civil in nature and was previously addressed by the National Company Law Tribunal (NCLT) in October 2024.
The investigation by the Economic Offences Wing remains ongoing.
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