Digital News Guru Mumbai Desk:
Mumbai Police Blocks Travel for Shilpa Shetty & Raj Kundra Amid Rs 60 Cr Cheating Case
In a development that has captured both legal and entertainment headlines, the Mumbai Police’s Economic Offences Wing (EOW) has issued a Lookout Circular (LOC) against Bollywood actress Shilpa Shetty and her husband, businessman Raj Kundra. This move comes in the wake of a Rs 60 crore cheating case filed by businessman Deepak Kothari, and is seen as a serious escalation in the investigation.
What is a Lookout Circular?
A Lookout Circular is a legal mechanism used by Indian authorities to prevent individuals under investigation from leaving the country. Once issued, immigration checkpoints across the country are alerted, enabling immediate action if the individual attempts to exit the country.
Allegations Unveiled: Loan Disguised as Investment?
The core of the case began with a complaint lodged by Deepak Kothari—director of Lotus Capital Financial Services, a Mumbai-based NBFC. He alleged that between 2015 and 2016, he was persuaded to provide funds totaling approximately Rs 60.48 crore to Best Deal TV Pvt. Ltd., owned and managed by Shilpa Shetty and Raj Kundra. While Kothari initially agreed to a loan of Rs 75 crore at 12% interest, the duo allegedly restructured it as an “investment,” citing tax benefits and promising monthly returns and eventual principal repayment.
Kothari claims he transferred Rs 31.95 crore in April 2015 under a share subscription agreement, followed by Rs 28.53 crore in September 2015 under a supplementary agreement. Although Shilpa gave a personal guarantee in April 2016, she resigned as director just five months later. By 2017, Best Deal TV had entered insolvency proceedings.
The complaint, filed at the Juhu Police Station on August 14, 2025, accuses the couple under sections 403 (criminal breach of trust), 406, and 34 (common intention) of the Bharatiya Nyay Sanhita. Given the significant sum, the case was swiftly transferred to the EOW for further investigation.
Why the LOC Was Issued
Authorities cited the couple’s frequent international travel as a major concern that could hinder investigation. The LOC ensures they remain within Indian jurisdiction while the probe unfolds.
According to a senior IPS officer, the documentation for the LOC was submitted to the immigration department, and it was expected to be enforced within 12 hours. If the couple attempts to travel, they could be detained. The EOW also plans to summon them for statements in the coming week.
The Couple’s Legal Defense
Shilpa Shetty and Raj Kundra’s legal team, led by Advocate Prashant Patil, has strongly denied any wrongdoing. In a public statement, he described the transaction as an equity investment resolved through a National Company Law Tribunal (NCLT) ruling in October 2024, not as criminal fraud. He also clarified that all auditors and financial documentation, including detailed cash-flow statements, have been provided to the EOW.
The defense maintains that the allegations are civil in nature, not criminal, and has hinted at legal recourse against malicious reporting.
Broader Background: Not the First Brush with Legal Scrutiny
This isn’t the couple’s first legal entanglement. In 2021, Raj Kundra was arrested in connection with an adult content production case and later faced separate money laundering investigations tied to Bitcoin fraud—leading to the attachment of properties worth Rs 97 crore. His past has often sparked controversy, making this latest development part of a broader legal narrative.
Implications and The Road Ahead
- Legal Consequences: If the EOW substantiates the allegations, charges under criminal breach of trust could lead to serious repercussions.
- Travel Ban: The LOC prohibits their unrestricted movement abroad—a significant constraint given their public profiles and business interests.
- Media and Reputation: The case has attracted widespread media attention, potentially affecting personal brand value and public engagement.
- Next Steps: The EOW is expected to summon the couple soon for interrogation. Further investigation may involve tracing fund flow, auditor testimony, and financial forensics.
In Perspective
The so-called “investment” deal once seen as a strategic capital boost for their business has now ballooned into an investigation with substantial legal stakes. Shilpa Shetty and Raj Kundra’s high-profile lives have intersected again with intense scrutiny—this time over serious financial allegations.
As the legal process unfolds, one verdict remains central: whether this case will stay in the realm of civil dispute resolution or escalate into criminal accountability. The issuance of the Lookout Circular signals that the authorities are treating this matter with utmost seriousness—and that it remains very much a developing story.
You May Also Read: Actor Ashish Warang Passes Away at 55, A Loss for Hindi & Marathi Cinema Alike
