ED seized Home and other properties of Shilpa Shetty and Raj Kundra in Rs.6600 crore crypto scam
Bollywood actor Shilpa Shetty and her businessman husband Raj Kundra have taken their case to the Bombay High Court to challenge eviction notices issued by the Enforcement Directorate (ED). The couple’s properties, including their home in Juhu, Mumbai, and a farmhouse near Pawna Lake, have been temporarily seized by the ED as part of an investigation into a cryptocurrency Ponzi scheme. On October 9, a division bench consisting of Justices Revati Mohite-Dere and Prithviraj Chavan issued a notice to the ED and set a hearing for October 10 to review the matter.
Petition Filed by the Couple
The couple, represented by lawyer Prashant Patil, filed a petition requesting protection for their home and family rights. They argue that the ED acted unfairly by issuing eviction notices on September 27, 2024. These notices demanded that the couple vacate their properties within 10 days. The couple received the notice on October 3.
Background of the Case
The couple has been facing legal trouble since 2018, when the ED began investigating Amit Bharadwaj, who is accused of running a cryptocurrency Ponzi scheme.
The case involves the masterminds behind an investment scheme called ‘Gain Bitcoin,’ launched in 2017. They lured investors by falsely promising a 10% monthly return, paid in bitcoins.
In a short time, they raised ₹6,600 crore. The main accused, Ajay Bhardwaj and Mahendra Bhardwaj, convinced investors that the money would be used to mine bitcoins, which would supposedly yield quick and large profits.
Initially, they paid returns to early investors using funds from newer ones, but the payments stopped when they couldn’t attract enough new investors. They then purchased bitcoins with the remaining money and hid them in obscure online wallets.
The Enforcement Directorate (ED) began investigating after multiple FIRs were filed by the Maharashtra and Delhi Police. During the probe, it was discovered that Raj Kundra received 285 bitcoins from Amit Bhardwaj, the mastermind of the Gain Bitcoin Ponzi scheme, to set up a Bitcoin mining farm in Ukraine, according to the ED.
Full Cooperation with ED
The petition states that the couple has fully cooperated with the ED, attending all hearings and responding to notices from 2018 to 2024. In April 2024, they were informed that their properties had been provisionally seized by the ED, including their home, which was purchased in 2009 by Raj Kundra’s father. The couple appeared at the ED office and gave their statements.
Dispute Over Property Seizure
Although the couple challenged the provisional seizure, the ED confirmed the attachment on September 18. The petition explains that the seizure is only temporary until the trial ends and can still be challenged in court within 45 days. Despite this, the ED issued eviction notices, forcing the couple to leave their home, where they have lived for more than 15 years.
Claims of Unfair Treatment
The couple argues that the eviction notices are unjust and prevent them from properly challenging the ED’s seizure order in court. They further claim that their properties were purchased with legitimate income and not from any illegal activities. They deny being part of the Ponzi scheme and insist that they are not beneficiaries of the crime.
Request to Cancel Eviction Notices
In their petition, the couple is asking the court to cancel the eviction notices and allow them to remain in their home until the legal process is fully completed.
