Raj Kundra, accused of fraud, claims he was unable to repay loan due to demonetisation: Report
A case was filed against Raj Kundra and Shilpa Shetty for duping a Mumbai-based businessman of nearly ₹60 crore in a loan-cum-investment deal
Businessman Raj Kundra has informed the probe agencies that he couldn't repay the loan in 2016 after demonetisation was implemented and currency notes of ₹500 and ₹1000 were banned, NDTV reported. Kundra, husband of actor Shilpa Shetty, is facing investigations in a fraud case of ₹60 crore.
A case was filed against the couple on August 14 for duping a Mumbai-based businessman Deepak Kothari of nearly ₹60 crore in a loan-cum-investment deal linked to now-defunct Best Deal TV Private Limited, a home shopping and online retail platform. Shetty and Kundra were the directors of the platform.
Investigation so far
The Economic Offences Wing (EOW) of Mumbai Police is probing the case based on a complaint filed by Kothari, who is also the director of Lotus Capital Financial Services. He has alleged that between 2015 and 2023, Shilpa Shetty and Raj Kundra used the money he had given them to grow their business for their personal expenses.
Kothari stated that he transferred ₹31.95 crore in April 2015 under a shared subscription agreement and another ₹28.53 crore in September 2015 under a supplementary agreement. However, Kothari later found that insolvency proceedings had begun against the company for allegedly cheating another investor. Shetty stepped down as director of Best Deal TV.
The agreed interest rate was 12 per cent. Later, they allegedly asked him to treat the amount as an “investment” instead of a loan, assuring him of monthly returns and repayment of the principal. Kothari 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 entire amount was credited to Best Deal TV’s bank accounts.
Kothari has accused the couple of “dishonestly using” his money for personal benefits and his repeated attempts to recover the money failed. In 2016.
Bombay HC's directive
Amid the ongoing probe, the Bombay High Court on Wednesday ordered actor Shetty and Kundra to deposit ₹60 crore if they wish to travel to Los Angeles in the United States or any other foreign location. Denying permission to travel, the court also refused to pause the Look Out Circular (LOC) issued against them.
This comes after the couple filed a plea in the high court seeking the quashing of the LOC issued against them in connection with an FIR over an alleged fraud of ₹60 crore. The high court has adjourned the matter until October 14, LiveLaw reported.
