The Economic Offences Wing (EOW) of the Mumbai Police has issued a Lookout Circular (LOC) against Bollywood actor Shilpa Shetty and her businessman husband Raj Kundra. The circular, issued in a ₹60 crore cheating case, will prevent the couple from travelling abroad without official clearance.
Police sources said the move was necessitated due to the couple’s frequent international travel and the need to ensure their availability during the ongoing investigation.
Businessman Alleges Misuse of Funds
The case stems from a complaint by businessman Deepak Kothari, who alleged that he was cheated of ₹60.48 crore between 2015 and 2023. Kothari claimed that he had advanced funds to Best Deal TV Pvt. Ltd., a home-shopping venture promoted by Raj Kundra and Shilpa Shetty.
ALSO READ: Faith and Controversy: Raj Kundra’s Emotional Kidney Offer Amid Rs.60 Crore Fraud Allegations
According to the complaint, the funds were extended under a loan-cum-investment agreement, with the assurance that the money would be utilized to expand the business. Instead, Kothari alleged that the funds were misappropriated for personal use.
Investigators have noted that Shilpa Shetty held an 87.61% stake in the now-defunct company, raising questions about her role in the financial transactions.
Company, Collapse and Complaint
Best Deal TV Pvt. Ltd. was launched with much fanfare, leveraging celebrity endorsements and a growing e-commerce market. However, the company shut down operations within a few years, leaving behind unpaid creditors and investors.
Kothari alleged that despite repeated demands, his investments were neither returned nor accounted for, prompting him to approach the police. The EOW registered a case under sections related to cheating and criminal breach of trust of the Indian Penal Code.
On their part, Shilpa Shetty and Raj Kundra’s legal representatives have denied any wrongdoing. They have argued that the matter is purely civil in nature and has already been addressed before the National Company Law Tribunal (NCLT).
The defence has further stated that the business failure cannot be equated with cheating and that the complaint is an attempt to give a commercial dispute a criminal color.
Wider Implications
The issuance of an LOC against high-profile personalities like Shetty and Kundra has once again brought focus on investor protection and the accountability of celebrity-driven ventures. Legal experts note that while investors often trust such ventures because of the star power attached to them, failures frequently leave them with limited recourse.
The case is currently under investigation, with the EOW examining bank records, agreements, and financial transactions linked to Best Deal TV. Whether the dispute remains a commercial matter or leads to criminal liability will depend on the outcome of these findings.