Mumbai (Maharashtra): Bollywood actress Shilpa Shetty has cancelled her planned foreign trip following the Bombay High Court’s refusal to grant a temporary suspension of the Look Out Circular (LOC) issued against her and her husband, businessman Raj Kundra, in connection with an alleged Rs 60-crore fraud case.
Shetty’s lawyer informed the court on Thursday that the actress would not proceed with her travel plans after the court declined to lift the LOC, which had been issued by the Mumbai Police’s Economic Offences Wing (EOW) as part of an ongoing investigation into the financial fraud allegations.
Background of the case
In August, a complaint was filed by businessman Deepak Kothari, director of Lotus Capital Financial Services Ltd, accusing Shilpa Shetty, Raj Kundra, and another individual of cheating him of over Rs 60 crore. The alleged incidents span 2015 to 2023, according to the complaint.
Kothari claimed that in 2015, Shetty and Kundra approached him through a mediator for a Rs 75-crore loan for their company Best Deal TV Pvt Ltd, which promoted lifestyle products and operated an online shopping platform. The proposed interest rate was 12 per cent. Later, the couple reportedly requested the funds as an investment rather than a loan, assuring Kothari of monthly returns and repayment of the principal.
Kothari alleged that he transferred Rs 31.95 crore in April 2015 under a share subscription agreement and Rs 28.53 crore in September 2015 under a supplementary agreement, with the amounts credited to Best Deal TV’s bank accounts. He claimed that repeated attempts to recover the funds failed and accused the couple of dishonestly using the money for personal benefit.
Legal proceedings
Shilpa Shetty and Raj Kundra had approached the Bombay High Court seeking a temporary suspension of the LOC to facilitate their travel abroad. However, the court refused the plea, leading to the cancellation of the trip.
Their lawyer, Prashant Patil, denied all allegations, stating that the couple intends to present the truth to the investigating agencies.
Implications
The LOC remains in effect, restricting Shetty and Kundra from leaving the country until further directions from the court or investigating authorities. The case has attracted significant media attention due to the high-profile nature of the individuals involved and the size of the alleged financial fraud.
Authorities continue to investigate the financial transactions and verify whether the funds were misused, while legal proceedings are expected to unfold over the coming months. The Bombay High Court’s decision underscores the judicial caution in allowing foreign travel amidst ongoing financial fraud investigations.