Shilpa Shetty quotes Gita, reveals what real issue is amid controversy over restaurant: ‘We loaned them ₹20 crore’

Shilpa Shetty denies tax evasion claims following an IT raid linked to her family’s business.

Actor Shilpa Shetty has denied tax evasion claims after an alleged IT raid at her home. The Income Tax Department has searched the office premises of multiple food and beverages companies in Mumbai, including one linked to Shilpa, on charges of tax evasion, official sources said on Thursday.

Raj Kundra and Shilpa Shetty own multiple restaurants.

The actor said she has been unfairly named in the matter and maintained that her role with the concerned company was limited and non-operational.

Shilpa released the following statement:

I am deeply saddened by the baseless attempt to link my name to this matter. My association with the company was strictly in a non-executive capacity, with no role in its operations, finances, decision making or any signing authority. In fact like several other public figures I had endorsed certain products for the home shopping channel, in a professional capacity, for which payments due to me remain outstanding.

I want to put it on record that almost 20 Cr rupees has been loaned to the company by us as a family and the said amount remains unpaid. The mischievous attempt to impute criminal liability on me, particularly after an unexplained delay of nearly nine years is legally unsustainable and contrary to settled principles of law.

Despite these facts, my name continues to be unnecessarily dragged into the proceedings, which is both distressing and unjustified. Such unwarranted allegations not only misrepresent facts but also result in a woman’s dignity, integrity, and reputation being unfairly trampled upon in the public domain.

As quoted in the Bhagavad Gita, “Failing to oppose injustice when it is your duty, is itself Adharma.” With a quashing petition already filed before the Honourable Bombay High Court, I have complete faith in the judicial process and will be seeking appropriate legal remedies to protect my rights and reputation.

I respectfully request the media to take note of these facts and report responsibly by verifying the truthfulness of facts."

Meanwhile, Shetty's husband, Raj Kundra, also denied the allegations. Earlier, in a post on his X handle, Kundra termed the claims "baseless and motivated," stating that the issues were being given a criminal colour without any lawful basis.

"We categorically deny the baseless and motivated allegations being circulated. The issues sought to be raised are being given a criminal colour without any lawful basis."

"A Quashing Petition has already been filed before the Hon'ble High Court and is pending adjudication. Having fully cooperated with the investigation, we are sanguine that justice will prevail and have complete faith in the law enforcement authorities and the Indian judiciary. We respectfully urge the media to exercise restraint as the matter is sub judice," the tweet further read.

What is the tax evasion issue?

IT officials said about 20-24 premises in and around Mumbai were being raided since Wednesday after the department got "actionable" inputs against certain companies in this sector who are alleged to have been undertaking "out of the books" or cash transactions.

The sources said the searches have covered some office premises of a restaurant co-owned by Shetty and some others. They denied that her Mumbai house was being raided by the taxman.

The tax officials said the I-T investigation was neither linked to a Maharashtra Police FIR against Shetty and her husband Raj Kundra (on charges of fraud) nor one registered by Bengaluru police against a local restaurant for allegedly operating post the legal working hours.

The Bengaluru restaurant is stated to be co-owned by Shetty.