Bollywood couple Shilpa Shetty and Raj Kundra, have been charged with defrauding a Mumbai-based businessman of Rs 60.48 crore. The case revolves around a loan-cum-investment deal for the couple’s now-defunct Best Deal TV Pvt Ltd. Businessman Deepak Kothari claims he gave the funds for business expansion between 2015 and 2023, but alleges the couple used the money for personal expenses. The Economic Offences Wing (EOW) is now investigating the high-profile case, which initially began at Juhu Police Station.
The Loan-Cum-Investment Deal
Mr Kothari stated that he connected with the couple through an agent, Rajesh Arya, in 2015. At that time, Shilpa Shetty and Raj Kundra were directors of Best Deal TV, an online shopping platform. Ms Shetty held over 87% of the company’s shares. Mr Arya reportedly sought a loan of Rs 75 crore at 12% annual interest for the company. To reduce tax complications, he suggested channeling the amount as an “investment.” A meeting was held, and the deal was finalized with a promise of timely repayment.
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Fund Transfers and Personal Guarantees
The businessman transferred the first installment of about Rs 31.95 crore in April 2015. However, the tax issue remained unresolved, leading to a second deal in September. Mr Kothari then transferred an additional Rs 28.54 crore between July 2015 and March 2016 and in total, he gave over Rs 60.48 crore and paid Rs 3.19 lakh in stamp duty. Ms Shetty provided a personal guarantee in April 2016 but resigned as the company’s director by September that year.
Emergence of Insolvency Case
Months after the transfers, an insolvency case of Rs 1.28 crore was filed against Best Deal TV, of which Mr Kothari claimed he had no prior knowledge. His repeated requests for repayment were ignored and he alleges that the couple ran a carefully planned conspiracy during 2015-2023.
Police and EOW Investigation
At first, Mr Kothari went to Juhu Police Station and complained about cheating and forgery. Because the amount of money was very large, the police sent the case to the Economic Offences Wing (EOW). Now, the EOW is investigating the case and checking where all the money went.
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Implications of the Case
The case got a lot of attention because Shilpa Shetty and Raj Kundra due to the high-profile status. It shows that rules should be strict for all business deals, even with celebrities. The police and authorities are making sure the money is returned and everyone is held responsible.
