A major legal and financial tangle continues to grip Bollywood actor Shilpa Shetty and her businessman husband, Raj Kundra. The couple is currently under investigation by the Mumbai Police’s Economic Offences Wing (EOW) following a criminal complaint alleging they duped a Mumbai-based businessman of nearly ₹60 crore in a loan-cum-investment deal related to their former company, Best Deal TV Private Limited.
The latest development saw the Bombay High Court take a stern view on the couple’s request to travel abroad, leading to a viral court quip about depositing the entire disputed amount first.
The Alleged Fraud: A Loan Turned ‘Investment’
The case stems from a complaint filed by Deepak Kothari, a director of Lotus Capital Financial Services, on August 14, 2025. Kothari alleges that between 2015 and 2023, he was induced to pour significant funds into Best Deal TV, a home shopping and online retail platform where both Shetty and Kundra were directors.
Initially, the couple had approached Kothari for a ₹75 crore loan, proposing a 12 per cent interest rate. Kothari stated that he transferred two tranches of money—₹31.95 crore in April 2015 under a share subscription agreement, and another ₹28.53 crore in September 2015 under a supplementary agreement—with the entire amount credited to Best Deal TV’s bank accounts.
However, the nature of the transaction allegedly changed. Kothari claims the couple later asked him to treat the total amount as an ‘investment’ instead of a loan, assuring him of monthly returns and the eventual repayment of the principal. The businessman later discovered that the now-defunct company was facing insolvency proceedings over alleged misconduct with another investor. He accused the couple of dishonestly diverting his funds for their personal expenses instead of business growth, and all attempts to recover the money failed.
Shilpa Shetty had resigned from the directorship of Best Deal TV in September 2016.
Raj Kundra’s Demonetisation Defense
In his statement to the probe agencies, Raj Kundra, who is facing investigations, has offered a defense citing the 2016 currency ban. Kundra informed the EOW that his company, which relied heavily on a ‘Cash on Delivery’ model for its electrical and household appliance business, suffered heavy losses following demonetisation. He claimed this financial setback, caused by the banning of ₹500 and ₹1,000 currency notes, made it impossible for the company to repay the borrowed funds.
Bombay High Court Refuses Travel Permission
Amid the ongoing investigation, Shetty and Kundra had petitioned the Bombay High Court seeking the suspension of the Look Out Circular (LOC) issued against them, which restricts their travel abroad.
During the hearing on Wednesday, which focused on the couple’s request to travel internationally for professional commitments (including an event in Los Angeles), the High Court made it clear it would not permit foreign travel, especially leisure trips, while the serious financial allegations remain pending.
While hearing the counsel’s arguments, a bench of the High Court reportedly quipped that the couple could first deposit the entire ₹60 crore if they wished to travel abroad. The court has requested a formal affidavit detailing the necessity and official correspondence for the proposed business trip. The court denied permission to pause the LOC and has adjourned the matter until October 14, 2025, for further hearing.
The EOW’s probe continues, with five individuals’ statements, including that of Kundra and Shetty, already recorded. The actor herself was questioned at her residence for over four hours recently, where she reportedly maintained that she was not involved in the day-to-day financial affairs of Best Deal TV.