The ongoing Rs 60-crore cheating case involves businessman Raj Kundra and his wife, actress Shilpa Shetty

The ongoing Rs 60-crore cheating case involves businessman Raj Kundra and his wife, actress Shilpa Shetty, concerning their now-defunct home shopping and online retail platform, Best Deal TV Pvt Ltd.

Allegations of Cheating;

The case was lodged by Deepak Kothari, a director of Lotus Capital Financial Services Limited. The central allegation is that the couple cheated Kothari out of approximately Rs 60.4 crore through a loan and investment arrangement that spanned from 2015 to 2023.

Seeking Investment: Kothari alleged in his First Information Report (FIR) that Kundra and Shetty, who were directors of Best Deal TV Pvt Ltd, approached him through an agent seeking a business loan of Rs 75 crore at a 12 percent interest rate.

Conversion to Investment: According to the FIR, the couple allegedly persuaded Kothari to route the funds as an 'investment' through a share subscription agreement and a supplementary agreement to avoid higher taxation. Kothari transferred funds in installments, totaling the disputed amount, and was reportedly assured of monthly returns and repayment of the principal.

Alleged Misuse of Funds: Kothari claims that despite repeated attempts to recover the money, citing the COVID-19 pandemic and mediation failures, he later discovered that the couple allegedly diverted the funds for personal use rather than for the company's business expansion.

The Defense and Investigation

The Mumbai Police's Economic Offences Wing (EOW) is investigating the matter and has recorded statements from both Raj Kundra and Shilpa Shetty. A Look-Out Circular (LOC) has also been issued against the couple.

Raj Kundra's Explanation: Kundra claimed in his statement to the EOW that his company, which primarily used a 'Cash on Delivery' model, suffered significant losses due to the 2016 demonetisation, as customers lacked cash. He stated that the business was unable to repay the loan due to these financial setbacks. Kundra also claimed that a large portion of the investment was spent on advertising and staffing for Best Deal TV.

Shilpa Shetty's Defense: Shilpa Shetty, who reportedly owned a significant share (87.61 percent) of the company at the time, was also questioned by the EOW. She has since asked the Bombay High Court to cancel the LOC against her, claiming she was only a nominal director and had no real involvement with the company's daily financial affairs. She also stated that she promoted the firm in an advertisement, but the payment had not been credited to her account.

Legal Developments
The couple petitioned the Bombay High Court to quash the LOC to allow them to travel abroad for professional and personal trips.

High Court's Stance: The Bombay High Court has consistently refused to grant permission for international travel or to pause the LOC. The court has stated that it would consider the plea only if the couple first deposits the entire Rs 60 crore allegedly owed to the complainant.

Demand for Affidavit: The court also asked Shilpa Shetty to provide a written affidavit to prove her alleged lack of connection to the company's affairs, further emphasizing that any relief is contingent upon repaying the disputed amount.

The case remains ongoing, with the EOW continuing its investigation into the financial transactions of Best Deal TV Pvt Ltd.
(Disclaimer: AI was used to help with writing this news story and picture)