Mumbai Police issue lookout notice against Shilpa Shetty, Raj Kundra in Rs 60 crore fraud case
Businessman Deepak Kothari alleges couple misused funds meant for Best Deal TV; their lawyer calls accusations baseless, cites resolved civil dispute
NewsArc Bureau
Mumbai, September 5, 2025 – Mumbai Police’s Economic Offences Wing (EOW) has issued a Lookout Circular (LOC) against Bollywood actor Shilpa Shetty and her businessman husband Raj Kundra in a Rs 60.48 crore fraud case, citing their frequent international travel. The action follows a complaint by Juhu-based businessman Deepak Kothari, who alleges the couple diverted funds meant for their now-defunct company, Best Deal TV Pvt Ltd, for personal use between 2015 and 2023.
Kothari, director of Lotus Capital Financial Services, filed the case on August 14 at Juhu Police Station, claiming he was introduced to Shetty and Kundra through agent Rajesh Arya in 2015. At the time, Shetty held over 87% of Best Deal TV’s shares and, with Kundra, sought a Rs 75 crore loan at 12% annual interest for business expansion. Kothari alleges they later advised showing the funds as an investment to avoid tax liabilities, promising monthly returns. He transferred Rs 31.95 crore in April 2015 and Rs 28.54 crore between July 2015 and March 2016, totaling Rs 60.48 crore, plus Rs 3.19 lakh in stamp duty. Shetty allegedly provided a personal guarantee in April 2016 but resigned as director in September that year. Kothari later discovered a Rs 1.28 crore insolvency case against the company in 2017, which he claims was concealed from him. Despite repeated demands, he says his money was not returned.
The case, initially filed under Bharatiya Nyaya Sanhita sections 403 (dishonest misappropriation), 406 (criminal breach of trust), and 34 (common intention), was transferred to the EOW due to the amount exceeding Rs 10 crore. The EOW is probing the couple’s travel records and has summoned the company’s auditor to trace the money trail. A 2024 National Company Law Tribunal (NCLT) ruling ordered Best Deal TV’s liquidation, but Kothari alleges the funds were misused prior to this.
Shilpa Shetty and Raj Kundra’s lawyer, Advocate Prashant Patil, dismissed the allegations as “baseless and malicious,” asserting the matter is a civil dispute resolved by the NCLT on October 4, 2024. Patil told Dainik Bhaskar that the transaction was a legitimate equity investment, not a loan, and that the company faced financial distress, leading to a prolonged legal battle. He noted that their auditors provided the EOW with documents, including cash flow statements, over 15 times in the past year, and accused the complainant of attempting to defame his clients. “We are taking appropriate legal action against those responsible,” Patil added.
The LOC restricts Shetty and Kundra from leaving India without clearance, intensifying their legal woes. Earlier in 2025, another businessman, Prithviraj Kothari, accused them of fraud in a gold scheme, while Kundra faces a separate money laundering probe linked to a Bitcoin scam. The couple’s high-profile status and the significant sum involved have drawn public attention, with the EOW’s investigation set to determine the veracity of the allegations amidst their claims of a targeted smear campaign.
