Raj Kundra: ‘Couldn’t repay loan after demonetisation hit my business’
Businessman Raj Kundra told investigators that demonetisation prevented him from repaying a loan in 2016. The Reserve Bank of India had banned ₹500 and ₹1000 notes that year. Kundra, husband of actor Shilpa Shetty, is now facing scrutiny in a ₹60-crore fraud case, NDTV reported.
The case dates back to August 14, when authorities filed complaints against the couple. They allegedly duped Mumbai-based businessman Deepak Kothari. The dispute involves a loan-cum-investment deal connected to Best Deal TV Private Limited, a home shopping and online retail platform. Both Shetty and Kundra served as directors of the platform.
According to the Economic Offences Wing (EOW) of Mumbai Police, Kothari claimed the couple misused his money. He also serves as director of Lotus Capital Financial Services. Between 2015 and 2023, he alleged, Kundra and Shetty used funds meant for business growth for personal expenses.
Kothari stated that he transferred ₹31.95 crore in April 2015 under a share subscription agreement. Later, in September 2015, he sent another ₹28.53 crore under a supplementary agreement. However, Kothari noticed insolvency proceedings against Best Deal TV, which reportedly involved cheating another investor. Soon after, Shetty resigned as director.
Initially, the parties agreed on a 12% interest rate. Later, Kundra and Shetty asked Kothari to treat the loan as an “investment.” They promised monthly returns and assured repayment of the principal. All funds were credited to Best Deal TV’s bank accounts.
Kothari accused the couple of “dishonestly using” his money for personal benefit. He tried repeatedly to recover the funds, but his attempts failed. In 2016, he faced the first major signs of financial trouble in the company.
Meanwhile, the Bombay High Court intervened. On Wednesday, it directed Shetty and Kundra to deposit ₹60 crore before traveling abroad. The court denied them permission to travel to Los Angeles or any foreign location. Additionally, it refused to pause the Look Out Circular (LOC) issued against them.
The couple had filed a plea in the high court seeking to quash the LOC linked to the ₹60-crore fraud FIR. The court has adjourned the matter until October 14, LiveLaw reported.
Kundra’s defense emphasizes demonetisation as the reason for missed payments. However, investigators continue probing the alleged misuse of funds. The couple faces scrutiny over financial decisions, company insolvency, and claims of personal expenditure using investor money.
The case highlights challenges in India’s corporate governance. It also illustrates the legal consequences of blending personal and business finances. With the High Court closely monitoring the matter, the couple’s ability to travel and conduct business may remain restricted until resolution.
