MUMBAI (Maharashtra): The Bombay High Court on Wednesday refused permission to actor Shilpa Shetty and her husband Raj Kundra to travel abroad, directing the couple to first deposit ₹60 crore if they wish to visit the United States or any other foreign destination. The court also declined to suspend the Look Out Circular (LOC) issued against them in connection with an alleged ₹60 crore fraud case.

The order comes after the couple filed a plea seeking the quashing of the LOC, which was issued by the Mumbai Police’s Economic Offences Wing (EOW). The high court has adjourned the matter until October 14, according to a report by LiveLaw.

Court’s direction and background of the case

Justice N. J. Jamadar, while hearing the plea, observed that the allegations against the couple were serious in nature, involving alleged misuse of funds belonging to a Mumbai businessman. The court stated that permission to travel abroad could not be granted without securing the claimed amount of ₹60 crore, which represents the sum allegedly defrauded.

The case was registered based on a complaint by Deepak Kothari, a 60-year-old businessman and director of Lotus Capital Financial Services, who accused Shetty and Kundra of dishonestly using his investment funds for personal gain.

According to the complaint, the alleged fraud occurred between 2015 and 2023, when the couple approached Kothari seeking a ₹75 crore loan for their company, Best Deal TV Pvt Ltd — a television and online shopping platform selling lifestyle products.

The allegations

Kothari claimed that the couple, through a mediator, had initially agreed to borrow the money at 12 per cent annual interest. However, they later requested him to treat the loan as an investment rather than a debt, promising monthly returns and repayment of the principal.

He stated that he transferred ₹31.95 crore in April 2015 under a share subscription agreement and another ₹28.53 crore in September 2015 under a supplementary agreement. The combined amount of over ₹60 crore was deposited into Best Deal TV’s bank accounts.

However, Kothari later discovered that insolvency proceedings had been initiated against Best Deal TV for allegedly cheating another investor. He alleged that his repeated attempts to recover the funds failed and that the accused had used the investment for personal expenses.

The businessman also pointed out that Shilpa Shetty stepped down as a director of Best Deal TV in 2016, shortly after the financial issues came to light.

EOW investigation and charges

Following a preliminary inquiry, the EOW concluded that Kothari’s funds had been misappropriated. A case was subsequently filed against Shetty, Kundra, and an unidentified associate under the following sections of the Indian Penal Code (IPC):

  • Section 403 – Dishonest misappropriation of property
  • Section 406 – Criminal breach of trust
  • Section 34 – Common intention

The probe also found that the funds were not utilised for legitimate business expansion as claimed, but were allegedly diverted for personal and unrelated expenditures.

Defence response

Reacting to the allegations, the couple’s lawyer Prashant Patil described the charges as “baseless and misleading.” He stated that Shetty and Kundra are cooperating fully with the investigation and would present “our truth before the investigating agencies.”

Sources close to the couple said that they maintain all financial dealings were transparent and properly documented, and that the business failure was being misrepresented as a criminal offence.

What happens next

With the court refusing to lift the Look Out Circular, Shilpa Shetty and Raj Kundra cannot leave India until further orders. The next hearing, scheduled for October 14, is expected to determine whether the LOC will be quashed or retained while the investigation continues.

The ruling is seen as a strong signal from the court regarding accountability in high-value economic offences. It also reflects a growing trend of judicial caution in cases involving financial irregularities and celebrity-linked business ventures.

As of now, the EOW continues its investigation into Best Deal TV Pvt Ltd, focusing on fund flows, investor records, and alleged misappropriation.