Mumbai police issue lookout notice for Shilpa Shetty, Raj Kundra: Report

Mumbai police has reportedly issued a Look Out Circular (LoC) against Bollywood actor Shilpa Shetty and her husband, businessman Raj Kundra, in connection with a Rs 60 crore cheating case.

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An NDTV report, quoting sources in the Economic Offences Wing (EOW), said police are examining the travel records of Shetty and Kundra. "If needed, a lookout notice will be issued against them," officials said, adding that the company’s auditor has also been summoned for questioning.

According to media reports quoting a senior police official, the move was necessitated by the couple’s frequent international trips, with the LoC intended to ensure that the investigation proceeds smoothly.

Case background

In August, the EOW registered a case of fraud at Juhu Police Station against Shetty, Kundra, and an unidentified person for allegedly cheating Mumbai-based businessman Deepak Kothari of Rs 60.4 crore in a loan-cum-investment deal involving their now-defunct company, Best Deal TV Private Limited.

In his complaint, Kothari, 60, director of Lotus Capital Finance Services, alleged that he was introduced to the couple through a person named Rajesh Arya. He claimed Kundra and Shetty promised monthly return of the loan and repayment of the principal.

As per the FIR, Kothari transferred Rs 31.9 crore in April 2015 under a share subscription agreement and another Rs 28.53 crore under a supplementary agreement in September 2015. He stated that the funds, meant for business expansion between 2015 and 2023, were later diverted for personal use.

Shilpa Shetty resigned as director of Best Deal TV in September 2016, a few months after providing a guarantee for the loan in April 2016. Kothari later discovered that insolvency proceedings had been initiated against the company in 2017 for defaulting on another agreement.

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Charges denied

According to the complaint, Kundra and Shetty, then directors of Best Deal TV, a home shopping and online retail platform, allegedly sought a Rs 75 crore loan but projected it as an investment to avoid higher taxation.

However, their lawyer, Advocate Prashant Patil, dismissed the accusations. Speaking to ANI, he said, "All allegations are false. There is no truth to these allegations. We have not received a copy of the FIR yet; once we do, we will know the exact allegations."

Patil argued that the deal in question dates back 7-8 years. "If someone felt cheated, they would not wait so long to complain. There is documentary evidence for everything. If anyone has objections, they can approach the EOW. We will present our side, and the truth will come out," he added.