The Mumbai Police on Friday started the procedure to issue a look out circular (LoC) against Shilpa Shetty and her husband Raj Kundra in connection with a ₹60 crores cheating case.
A senior police official said that the move is necessitated by the couple's frequent international trips, adding that LoC is to ensure that the investigation into the case is done smoothly.
The Economic Offences Wing (EOW) of the Mumbai Police filed a case against Shetty and Kundra for an alleged fraud of ₹60.48 crore on August 14.
The couple and an unknown person are accused of cheating a 60-year-old businessman, Deepak Kothari, of the huge sum.
Bollywood actress Shilpa Shetty, her businessman husband Raj Kundra and their company Best Deal TV Private Limited, which is now reportedly defunct, are involved in the fraud case.
What is the case?
According to Deepak Kothari, he lost the money in a loan-cum-investment deal, which he struck after being introduced to Raj Kundra through a common friend.
{{/usCountry}}According to Deepak Kothari, he lost the money in a loan-cum-investment deal, which he struck after being introduced to Raj Kundra through a common friend.
{{/usCountry}}The director of Lotus Capital Financial Services Ltd., Kothari, claimed that he was asked by Shetty and Kundra's company to transfer the sum as an investment, and was promised a return on a monthly basis, along with the repayment of the principal amount.
Kothari transferred the money in two instalments in 2015: ₹31.95 crore in April and another ₹28.53 crore in September. The full amount went into Best Deal TV's bank accounts.
A year later, in 2016, Shilpa Shetty resigned from the company and discovered insolvency proceedings against the company for cheating another investor.
The complainant claimed that repeated attempts to get the money back failed. He alleged that the funds, which the couple sought as an investment, were used for their personal benefit.
Mumbai Police booked the couple under Sections 403 (dishonest misappropriation of property), 406 (criminal breach of trust) and 34 (common intention) of the Indian Penal Code (IPC).
Shilpa Shetty, Raj Kundra dismiss allegations
On behalf of Shilpa and Raj, advocate Prashant Patil released a press statement and said that they deny all the allegations. Citing the payment as an 'old transaction', he added that the company later went into financial distress and eventually got entangled in a long legal battle at the NCLT.
"There is no criminality involved and our auditors have submitted all the necessary supporting documents from time to time, as requested by the EOW, including detailed cash flow statements. The investment agreement in question is purely in the nature of an equity investment," Patil said.
He termed the case 'baseless' and 'malicious', claiming that the company had already received a liquidation order, which was also placed before the police department.