Mumbai [India]: The Economic Offences Wing (EOW) of the Mumbai Police has intensified its investigation into the alleged ₹60 crore cheating case involving actor Shilpa Shetty and her husband, Raj Kundra. Fresh statements from the couple were recorded this week as officials continued to probe claims of financial fraud linked to their now-defunct company, Best Deal TV Pvt Ltd.
According to EOW officials, Raj Kundra, during his questioning, reiterated that his company — which specialised in the sale of electrical and home appliances — had suffered heavy financial losses following the demonetisation drive in 2016. Kundra reportedly told investigators that these losses led to the eventual collapse of his business operations, asserting that there was no fraudulent intent behind the company’s financial troubles.
Kundra cites demonetisation losses
Investigators revealed that Kundra maintained his company’s downfall was a result of unforeseen market disruptions triggered by demonetisation. He claimed that the liquidity crisis severely impacted consumer demand and cash flow, resulting in a series of losses that the company could not recover from.
However, officials added that Kundra’s statements are being thoroughly verified, as investigators continue to scrutinise the firm’s financial records and the flow of funds involved in the alleged fraud.
Shilpa Shetty denies involvement
In her separate statement to the EOW, Shilpa Shetty distanced herself from the company’s operations. She told investigators that she was not involved in the day-to-day running of Best Deal TV Pvt Ltd and had no role in the business decisions that led to its collapse.
Shetty also denied receiving any payment for endorsing the company’s products, despite being publicly listed as its brand ambassador. However, EOW officials said they are examining the financial transactions and payment records linked to the company to determine whether any funds were diverted or misused under the guise of endorsements or promotional deals.
Businessman alleges ₹60 crore fraud
The case originated from a complaint filed by businessman Deepak Kothari, who alleged that he was duped of nearly ₹60 crore through a fraudulent loan-cum-investment scheme involving Best Deal TV Pvt Ltd. Kothari claimed that he was promised lucrative returns, but the company defaulted, leading to significant financial losses.
Based on the complaint, the Mumbai Police registered a case of cheating and criminal conspiracy under relevant sections of the Indian Penal Code (IPC). The investigation has since focused on verifying the authenticity of investment documents, fund transfers, and contractual obligations between Kothari and the accused parties.
EOW continues to trace money trail
Officials confirmed that Raj Kundra has been questioned twice in connection with the case and may be summoned again as investigators seek to trace the flow of funds linked to the alleged fraud. The EOW is analysing bank statements, financial audits, and transaction records to ascertain whether the investors’ money was misappropriated.
“The investigation is ongoing. We are verifying statements, tracing financial transactions, and examining the company’s accounts to determine the extent of financial irregularities,” an EOW officer said.
The agency is also examining whether the funds were channelled into other ventures or personal accounts, and whether any overseas transactions were involved.
Travel restrictions imposed
Earlier, the Bombay High Court had restricted Shilpa Shetty and Raj Kundra from travelling abroad without depositing ₹60 crore as security in connection with the ongoing case. The court observed that given the scale of alleged fraud and the pending investigation, such restrictions were necessary to prevent any attempt to evade legal proceedings.
Broader implications for celebrity-led ventures
The case has once again raised questions about celebrity-backed business ventures and the potential misuse of public trust in such enterprises. Experts believe that increased scrutiny and transparency are essential when public figures are associated with commercial ventures that involve public investment.
Legal experts also noted that the outcome of the EOW probe could set a precedent for future cases involving celebrity endorsements linked to financial schemes.
Conclusion
As the investigation progresses, the Mumbai Police’s Economic Offences Wing is expected to summon more individuals associated with Best Deal TV Pvt Ltd to piece together the financial trail. While both Shilpa Shetty and Raj Kundra have denied wrongdoing, the EOW’s findings in the coming weeks will be crucial in determining whether criminal charges will be formally filed.