Shilpa Shetty and Raj Kundra seek to dismiss Rs 60 crore cheating case in Bombay HC

Shilpa Shetty and her husband, Raj Kundra, have taken legal action by approaching the Bombay High Court. They are seeking to have a Rs60-crore cheating case, which was filed against them by the Mumbai Police's Economic Offences Wing (EOW), dismissed.

Seeking to quash FIR

Along with seeking to quash the First Information Report (FIR), the couple has also requested that the court instruct the police to refrain from filing a chargesheet or taking any coercive measures against them while their petitions are under consideration.

On Monday, a bench comprising Chief Justice Shree Chandrashekar and Justice Gautam Ankhad issued a directive to the couple. They were instructed to furnish a copy of their petitions to the complainant, Deepak Kothari. The court has scheduled the next hearing for November 20, marking a significant step in the legal proceedings.

Allegations against Shilpa and Raj

Deepak Kothari, the director of Lotus Capital Financial Services Ltd, has made serious allegations against Shetty and Kundra. He claims that between 2015 and 2023, the couple persuaded him to invest Rs60 crore in their company, Best Deal TV Pvt Ltd. Kothari alleges that they promised business expansion and monthly returns on the investment. However, he contends that the funds were instead diverted for their "personal benefits," raising questions about the management and use of the invested capital.

The First Information Report (FIR) details the circumstances surrounding the alleged financial dealings. It states that the agreement was reached during a 2015 meeting held at a five-star hotel in Juhu. Present at the meeting were Kundra, Shetty, and Kothari. According to the FIR, the couple convinced Kothari to channel the funds as an "investment" rather than a loan. This was purportedly done to avoid higher taxation. Simultaneously, they assured Kothari of the repayment of the principal amount, outlining the terms of their agreement.

Shetty, Kundra Call FIR ‘False and Malicious’

In their petitions, Shetty and Kundra have strongly contested the accusations. They have characterized the First Information Report (FIR) as "false, distorted, and maliciously filed." The couple claims the FIR was filed with an ulterior motive, specifically to extort money. Furthermore, they argue that the issue is essentially civil and contractual in nature. They assert that it arises from a failed business venture, not from any criminal activity.

Shetty and Kundra have attributed the failure of Best Deal TV to external factors. They cited "unforeseen economic circumstances" as the primary cause, specifically mentioning demonetization in November 2016. This event severely impacted cash-based businesses. The couple maintained that the resulting losses were "merely business losses." They denied any fraudulent intent or criminal conspiracy behind the company's collapse.

Shetty has asserted that her involvement in the company was limited. She stated that she had no role in the daily operations of the business. Additionally, she clarified that her association with the company was brief.

Recently, Shetty withdrew her interim plea regarding travel abroad. This was in October and related to a separate case challenging a Look Out Circular (LOC) issued against her and Kundra. Previously, the High Court (HC) had suggested the couple deposit Rs 60 crore before considering their request to travel internationally. The case is now scheduled for a hearing on November 20.