Lookout Circular Issued Against Shilpa Shetty and Raj Kundra in Rs.60 Crore Cheating Case
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Famous Bollywood Actress Shilpa Shetty is again in news related to a fraud case. The Mumbai Police have issued a Lookout Circular (LOC) against Bollywood actor Shilpa Shetty and her businessman husband Raj Kundra in connection with a ₹60 crore cheating case.
The Economic Offences Wing (EOW) of Mumbai Police issued the LOC to prevent the couple from leaving India. A Lookout Circular is a preventive measure that alerts immigration authorities to stop someone from leaving the country or to track their movements.
The EOW has shared legal documents with immigration department to issue an LoC against the couple. Confirming the development, a senior IPS officer said, “The document has been submitted to the immigration department and an LOC has been issued against Shilpa Shetty and her husband Raj Kundra.”
“Once a Look Out Circular is issued, the same documents will be shared with other airports across the country and if they are found travelling through the airport, they will be detained,” said another officer. The police are also planning to summon the couple next week so they could record their statement in connection with the cheating case, said the officer.
Background of the Case
The case was originally registered at Juhu Police Station on August 14, based on a complaint filed by Deepak Kothari, a 60-year-old businessman and director of Lotus Capital Finance Services, a non-banking financial company (NBFC). Later, the case was transferred to the EOW for further investigation.
Kothari alleged that Shilpa Shetty and Raj Kundra cheated him of nearly ₹60 crore in a loan-cum-investment deal.
How the Deal Happened
Kothari came in contact with Kundra and Shetty through Rajesh Arya. At the time, the couple were directors of Best Deal TV Private Limited, a home shopping and online retail company.
In his FIR, Kothari alleged that Rajesh Arya, who was working as a loan agent in his firm, said Kundra and Shetty wanted to take on a business loan and that he knew them personally. A meeting was arranged in a five-star hotel in Juhu, where Raj Kundra, Shilpa Shetty, Arya, and the complainant, along with his son, met in 2015.
The couple claimed that they were directors of Best Deal TV Pvt Ltd, a now-defunct home shopping and online retail platform. At the time, Shetty reportedly held 87.61 per cent of the shares in the company. Both allegedly sought a loan of Rs 75 crore at 12 per cent interest, and the complainant agreed. However, the FIR said, the couple persuaded him to route the funds as an “investment” to avoid higher taxation, while assuring monthly returns and repayment of principal.
Believing these assurances, Kothari agreed and transferred Rs 31.95 crore in April 2015 under a share subscription agreement, followed by Rs 28.53 crore under a supplementary agreement in September 2015. The amount was allegedly credited to Best Deal TV’s HDFC Bank accounts, and the couple had paid stamp duty of Rs. 3.19 lakh, the complainant alleged in the FIR. Kothari alleged that he had given a loan of Rs 60.4 crore for business expansion between 2015 and 2023.
The FIR further states that despite providing a personal guarantee, the complainant received an email from Shilpa Shetty’s email address that she had resigned as director in September 2016 from Best Deal TV. Kothari asked the reasons, but she did not give a satisfactory answer and avoided him. Kothari later discovered that insolvency proceedings had been initiated against the company in 2017 for defaulting on another agreement.
By 2017, Kothari discovered that insolvency proceedings had already begun against the company for defaulting on another agreement. He then alleged that the loan money had been diverted for personal use instead of business purposes.
Based on these claims, Kothari filed a complaint against Shilpa Shetty, Raj Kundra, and other unknown individuals. The police then registered a case and began the investigation.
Kothari approached the Juhu police station, and based on his complaint, an FIR was registered in August this year under Sections 403 (dishonest and misappropriation of property), 406 (criminal breach of trust) and 34 (common intention) of the IPC against Raj Kundra and Shilpa Shetty Kundra. The case was handed over to EOW since the amount involved exceeded Rs 10 crore.
Response from Shetty and Kundra
In response, Shilpa Shetty and Raj Kundra’s lawyer issued a statement. They strongly denied the allegations, calling them false and civil in nature, not criminal.
The investigation is ongoing and more details will be released soon.
