Police Unearth Fund Diversion Trail Linked to Shilpa Shetty, Raj Kundra in Loan Fraud Case

The Mumbai Police’s Economic Offences Wing (EOW) has reportedly found evidence suggesting.

That actor Shilpa Shetty and her husband, businessman Raj Kundra, were involved in the diversion of funds in connection with a ₹60 crore loan fraud case from 2015. The complaint was filed by businessman Deepak Kothari’s non-banking financial company (NBFC) against Best Deal TV Pvt Ltd — a firm promoted by the couple. Officials said preliminary investigations indicated that the borrowed funds were allegedly routed through multiple related entities. The EOW is now set to appoint a third-party auditor to trace the exact flow of money and determine whether it was used to settle dues of other companies linked to Shetty and Kundra, including Satyug Gold, Viaan Industries, Essential Bulk Commodities Pvt Ltd, and Statement Media.

According to investigators, several transactions were allegedly shown as business expenses such as broadcasting, warehousing, travel, and operational costs — some of which may have been inflated or fabricated. Multiple vendors associated with Best Deal TV, including courier and media service providers, reportedly did not receive payments despite the company’s records showing otherwise.

Raj Kundra was recently questioned for nearly five hours by EOW officials. He claimed that the ₹60 crore borrowed amount was initially a loan but was later converted into equity. Kundra also said that ₹20 crore had been spent on broadcast rights, advertising, and celebrity promotions, naming actresses Bipasha Basu and Neha Dhupia as part of the endorsement roster.

However, investigators said there were discrepancies in the company’s financial statements. Despite being a majority shareholder, Shilpa Shetty allegedly charged ₹15 crore as a celebrity endorsement fee for Best Deal TV, a payment she claimed was routed through an advertising agency.

EOW officials have also flagged the absence of any formal valuation before converting the NBFC’s loan into equity, calling it a possible violation of corporate governance norms.

Kundra has attributed the company’s eventual shutdown to the impact of demonetisation, saying that Best Deal TV’s cash-on-delivery business model collapsed during the period. He also told police that several promotional materials and celebrity videos were seized during an earlier investigation into the pornography case handled by the Cyber Crime Cell — a claim that investigators are currently verifying.