Mumbai, October 10, 2025: Businessman Raj Kundra has told probe agencies that he was unable to repay a loan in 2016 after the government’s demonetisation move rendered ₹500 and ₹1,000 notes invalid, NDTV reported. Kundra, husband of actor Shilpa Shetty, is currently under investigation in a ₹60-crore fraud case.
The case, filed on August 14, accuses the couple of cheating Mumbai-based businessman Deepak Kothari in a loan-cum-investment deal linked to the now-defunct Best Deal TV Private Limited, a home shopping and online retail platform where Shetty and Kundra served as directors.
According to the complaint lodged with the Economic Offences Wing (EOW) of the Mumbai Police, Kothari—director of Lotus Capital Financial Services—alleged that between 2015 and 2023, the couple misused his funds, which were meant for business expansion, for personal expenses.
Kothari stated that he transferred ₹31.95 crore in April 2015 under a share subscription agreement and another ₹28.53 crore in September 2015 under a supplementary agreement. The funds were deposited into Best Deal TV’s accounts. However, he later discovered insolvency proceedings against the company for allegedly cheating another investor, following which Shilpa Shetty resigned as director.
Initially agreed at an interest rate of 12 percent, the loan was later reclassified as an “investment” at the couple’s request, with assurances of monthly returns and repayment of the principal. Kothari claimed his repeated recovery attempts failed and accused the duo of “dishonestly using” his money.
Meanwhile, the Bombay High Court has directed Kundra and Shetty to deposit ₹60 crore if they wish to travel abroad, including to Los Angeles. The court refused to suspend the Look Out Circular (LOC) issued against them and denied their request for foreign travel.
The couple had approached the court seeking to quash the LOC in connection with the ongoing fraud probe. The case has been adjourned until October 14, according to LiveLaw.
