Rs 60-crore ‘fraud’ case: Raj Kundra claims his business suffered loss due to demonetisation

The Mumbai police's Economic Offences Wing visited the residence of businessman Raj Kundra and his actor-wife, Shilpa Shetty, last week, and recorded their statements in connection with the alleged Rs 60 crore cheating case. Kundra's initial statement was recorded on September 15, but he agreed to provide a second round of statements, said a senior officer.

Written by Manish Kumar Pathak

Mumbai | Updated: October 10, 2025 02:40 PM IST

4 min read

In August, the agency booked Shilpa Shetty and Raj Kundra, and issued a Look-Out Circular (LOC) against them in the first week of September. (File)

Businessman Raj Kundra has claimed in his statement to the Mumbai police’s Economic Offences Wing (EOW) that his company, which operated in the home shopping and online retail sector, was heavily reliant on cash transactions and faced significant losses due to the demonetisation implemented in 2016.

A police team, comprising four to five members from EOW, visited the residence of Kundra and his actor wife, Shilpa Shetty, last week, and recorded their statements for nearly four hours in connection with the alleged Rs 60 crore cheating case.

The police also went on to record the statement of Shetty, as she was a signatory for Kundra’s firm, ‘Best Deal TV Pvt Ltd,’ a now-defunct home shopping and online retail platform.

Kundra’s initial statement was recorded on September 15, but he agreed to provide a second round of statements, said a senior officer.

Kundra claimed that over Rs 20 crore was spent on advertising for the firm, with a similar amount invested in setting up and employing staff. However, the business struggled significantly due to the demonetisation introduced in 2016, as customers lacked cash on hand, and the company primarily operated on a ‘Cash on Delivery’ model, resulting in substantial losses, according to a police officer involved in the investigation.

The officer further added, “Kundra also stated that one actor and two actresses from the Bollywood participated in the company’s advertisements, and he has submitted the documentation for this. However, their payments are still under verification. Shilpa Shetty also promoted the firm in an advertisement, but the payment has not been credited to her account. We will also examine Shetty’s bank transactions to confirm the payments”.

In August, the agency booked Shilpa Shetty and Raj Kundra, and issued a Look-Out Circular (LOC) against them in the first week of September.

Cheating case against Shilpa Shetty and Raj Kundra

Story continues below this ad

The case against the couple was lodged based on a complaint by Deepak Kothari, a director of Lotus Capital Financial Services Limited, a non-banking financial company, which provides loans. In the First Information Report (FIR), Kothari alleged that the couple approached him via a loan agent, Rajesh Arya, seeking a business loan.

According to the FIR, the couple claimed to be the directors of Best Deal TV Pvt Ltd. At that time, Shilpa reportedly owned 87.61 per cent of the company’s shares. The couple allegedly sought a loan of Rs 75 crore at an interest rate of 12 per cent, which Kothari agreed to. However, the FIR stated that the couple persuaded him to route the funds as an ‘investment’ to avoid higher taxation, while assuring him of monthly returns and repayment of the principal. Kothari said he transferred Rs 31.95 crore in April 2015 under a share subscription agreement, followed by Rs 28.53 crore under a supplementary agreement in September 2015.

The funds were reportedly credited to Best Deal TV’s HDFC Bank accounts, with the couple paying Rs 3.19 lakh in stamp duty, as alleged in the FIR.

Kothari alleged he loaned the couple Rs 60.4 crore for business expansion between 2015 and 2023. He claimed that he and his company made numerous attempts to recover the money from Kundra and Shetty through mediation, but they failed to respond adequately, citing delays due to the Covid-19 pandemic. Kothari eventually discovered that the couple allegedly used the funds for personal purposes, leading him to accuse them of cheating.

From the homepage