The Mumbai Police's Economic Offences Wing (EOW) has uncovered evidence indicating that Bollywood actor Shilpa Shetty and her businessman husband Raj Kundra diverted and embezzled funds in relation to a Rs 60 crore cheating case lodged by a non-banking financial company (NBFC) in 2015, according to sources who spoke to national media.
EOW officials stated that the initial probe, along with recorded statements, revealed that the money borrowed from businessman Deepak Kothari's NBFC for their company, Best Deal TV Pvt Ltd, was syphoned off and misappropriated through interconnected entities. Police sources added that the EOW is preparing to initiate a forensic audit via an independent third-party consultant to meticulously map out the precise pathway and end-use of the diverted funds.
The officials explained that this forensic examination will ascertain the manner in which the funds were misused and whether they were channelled to settle dues of other companies purportedly associated with Shetty and Kundra, including Satyug Gold, Viaan Industries, Essential Bulk Commodities Pvt Ltd, and Statement Media.
There is suspicion among officials that the funds were falsely recorded as legitimate business expenditures—such as costs for international travel, broadcasting services, warehousing facilities, and office maintenance—which could have been entirely fabricated to conceal the diversion.
Furthermore, EOW sources disclosed that multiple vendors contracted by Best Deal TV, including a courier service provider and a media solutions company, remained unpaid despite assertions to the contrary by the couple. The investigating agency plans to issue summons shortly to former employees of these vendor firms to formally document their statements.
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In a prior development, Raj Kundra underwent questioning for approximately five hours. He reportedly informed the investigators that the Rs 60 crore was originally secured as a loan but was subsequently converted into an equity investment. Kundra maintained that Rs 20 crore of it was utilised for broadcasting charges, celebrity endorsements, and various promotional activities. He specifically identified actresses Bipasha Basu and Neha Dhupia as recipients of payments for brand promotion campaigns and submitted photographs as supporting evidence.
Nevertheless, the EOW identified inconsistencies in the overall fund flow. Despite holding a majority stake in the company, Shilpa Shetty is alleged to have billed a Rs 15 crore celebrity endorsement fee for promoting, which was recorded as a company expense. Shetty explained to officials that she received the payment in her capacity as a model, routed through an advertising agency connected to her.
The officials also highlighted the absence of any valuation process prior to issuing equity shares to the complainant's NBFC, which has heightened suspicions.
Kundra asserted that the business incurred substantial losses due to the impact of demonetisation, as it primarily relied on a cash-on-delivery operational model, ultimately leading to its closure. He further mentioned that promotional materials and videos featuring other celebrities had been confiscated previously by the Cyber Crime Cell in connection with the pornography case investigation, and the EOW is currently in the process of verifying this claim.
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