Mumbai: The Economic Offences Wing (EOW) of Mumbai Police has issued Look Out Circulars (LOCs) against actor Shilpa Shetty Kundra and her businessman husband Raj Kundra in connection with an alleged 60.5-crore cheating case linked to a company in which they held majority stake. Sources said the LOCs were issued after a legal firm representing an investor in the firm, Deepak Kothari, sought immediate travel restrictions, freezing of bank accounts and assets, and appointment of an independent forensic auditor. The legal firm, YNA Legal, stated that considering their travel history both accused maintain multiple foreign residences, travel abroad frequently, and have previously delayed cooperation with investigators citing overseas engagements. “If permitted to leave India, they may abscond in the manner of Vijay Mallya and Nirav Modi, causing irreparable prejudice to the investigation,” the letter said. The complaint also emphasized the urgency of appointing a forensic auditor to trace the money trail, identify related-party transactions, and determine wrongful gains. It warned that any delay in freezing assets or securing financial records could compromise evidence and obstruct recovery.The case stems from an FIR registered at Juhu Police Station last month and later transferred to the EOW following a preliminary enquiry. The FIR names Shilpa Shetty Kundra, Raj Kundra, and another unidentified person under IPC sections of cheating and forgery, with the offence involving over 10 crore.According to the FIR, complainant Deepak Kothari (60), a Juhu resident and director of Lotus Capital Financial Services Ltd., alleged that between April 2015 and March 2016, the accused conspired with an intermediary, Rajesh Arya, to induce him into parting with 60.5 crore. The funds were routed into Best Deal TV Pvt. Ltd., a home shopping and e-retail company where Shetty reportedly held 87.61% shares. Initially projected as a 75 crore loan at 12% interest, the transaction was later restructured as an “investment” under a share subscription agreement to avoid taxation, with assurances of monthly returns and repayment of principal. Kothari transferred 31.95 crore in April 2015 and another 28.53 crore in Sept 2015 to the company’s HDFC Bank accounts.Despite a personal guarantee provided in April 2016, Shetty resigned as director in Sept the same year. In 2017, insolvency proceedings were initiated against Best Deal TV for defaulting on another agreement.Kothari alleged that repeated attempts to recover his funds failed, with excuses made during the pandemic, leading him to conclude that the accused had “dishonestly used” his money for personal enrichment. Shilpa Shetty and her husband have denied the allegations. EOW is now investigating the money trail and the role of each accused. Meanwhile, the complainant has pressed for preventive measures to ensure that the accused do not evade the process of law.
