Raj Kundra blames demonetisation for business losses in Rs 60 crore fraud case
According to Kothari’s complaint, between 2015 and 2023, the couple allegedly persuaded him to invest Rs 60 crore in Best Deal TV but later diverted the funds for their personal use
Businessman Raj Kundra, who has been accused of defrauding another businessman of nearly Rs 60 crore in a loan-cum-investment deal, told the Mumbai Police’s Economic Offences Wing (EOW) that his business suffered severe financial setbacks following demonetisation.
Also read | Fraud case: Bombay HC asks Shilpa Shetty, Raj Kundra to deposit Rs 60 cr before foreign travel
During his questioning by the EOW, which is probing the alleged fraud, Kundra said his company was involved in the trade of electrical and household appliances, but faced major losses after the Centre’s 2016 demonetisation move, sources told NDTV on Friday.
The 50-year-old businessman reportedly claimed that the financial strain caused by the policy rendered his firm incapable of repaying the borrowed amount.
Couple accused of fraud
Kundra has been questioned twice so far in connection with the case and is expected to be summoned again in the coming weeks. His wife, Bollywood actor Shilpa Shetty, was also questioned for over four hours at her residence on October 4.
A case was registered on August 14 in Mumbai against Raj Kundra and his wife, actor Shilpa Shetty, who were directors of the now-defunct Best Deal TV Private Limited, a home shopping and online retail platform. The two have been accused of cheating businessman Deepak Kothari of nearly Rs 60 crore in a loan-cum-investment deal.
According to Kothari’s complaint, between 2015 and 2023, the couple allegedly persuaded him to invest Rs 60 crore in Best Deal TV but later diverted the funds for their personal use. During her questioning, Shetty reportedly told police that she had no involvement in the day-to-day operations of the company she co-founded with her husband.
Seeks suspension of LOC
Last month, the couple approached the Bombay High Court seeking suspension of the Look Out Circular (LOC) issued against them by the police, citing professional and leisure travel abroad. However, a bench of Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad refused to allow the plea, observing that leisure travel could not be permitted while they face allegations of cheating and fraud.
Also read | Mumbai police issue lookout notice for Shilpa Shetty, Raj Kundra: Report
Later, the court said it would consider the petition only after the entire amount of Rs 60 crore is deposited. “Deposit the entire amount of Rs 60 crore, then we will consider the plea,” the bench said, posting the matter for further hearing on October 14. The couple's petition has sought suspension of the LOC from October 2025 to January 2026.