EOW summons Raj Kundra in ₹60 Cr cheating case

The EOW probe stems from a complaint by a Mumbai-based businessman who alleged that Shetty and Kundra diverted funds he had provided for personal purposes

MUMBAI: The Economic Offences Wing (EOW) of Mumbai Police have summoned businessman and actress Shilpa Shetty’s husband Raj Kundra in connection with the ₹60.48 crore cheating case which was registered against him on August 13. He will appear for the investigation next Monday (September 15).

Mumbai, India- February 19, 2024: Photo shoot with businessman and bollywood actress Shilpa Shetty`s husband Raj Kundra at Juhu, February 19, 2024. (Photo by Raju Shinde/HT Photo)

“We had summoned Raj Kundra to join the probe on Wednesday, however, he sent a request through his representative that he will join on Monday,” said a senior EOW official. HT’s text messages to Kundra’s lawyer Prashant Patil remained unanswered.

Last week, the EOW issued Look-Out-Circulars (LOCs) against Shetty and Kundra, so that they remain in the city for the inquiry. The couple is known to travel abroad often.

The recent case of fraud being investigated by EOW stems from a complaint by Deepak Kothari, a 60-year-old Mumbai-based businessman and director of Lotus Capital Financial Services. Kothari alleged that between 2015 and 2023, Shetty and Kundra diverted funds he had provided, to expand their business, for personal purposes.

The FIR registered in Juhu police station on August 13, states that Kothari was introduced to Kundra through a common acquaintance. He was informed that the couple held nearly 88% shares in Best Deal TV, a home-shopping and online retail platform. Initially, Kundra sought a loan of ₹75 crore at 12% annual interest, but Kothari claimed he was later persuaded to treat the transaction as an investment to avoid taxation and promise of better returns.

Kothari said he transferred the entire money in tranches through 2015, but soon discovered that insolvency proceedings had been initiated against the company for allegedly cheating another investor. Shetty resigned as director in 2016. Despite repeated demands, Kothari alleged that Kundra delayed repayment, citing the Covid-19 pandemic.

The EOW, after a preliminary inquiry, found that the complainant’s funds had been misused. Shetty, Kundra, and an unidentified associate were booked under IPC sections 403 (dishonest misappropriation of property), 406 (criminal breach of trust), and 34 (common intention).

Police have also summoned the auditor who examined the firm’s books before liquidation proceedings were filed before the National Company Law Tribunal (NCLT). Investigators are tracing the money trail to determine how the funds were spent.