The Mumbai Police have issued a Lookout Circular (LOC) against Bollywood actor Shilpa Shetty and her husband, businessman Raj Kundra, in connection with an alleged cheating case worth ₹60 crore.
According to PTI, the LOC was initiated by the Economic Offences Wing (EOW), citing the couple’s frequent international travel. The move ensures they cannot leave the country without prior clearance from authorities.
The case, registered at Juhu Police Station on August 14, accuses the couple of duping a businessman of nearly ₹60 crore in a loan-cum-investment deal.
What is the case about?
The complaint was filed by Deepak Kothari, director of Lotus Capital Financial Services Ltd., who alleged that he was defrauded through a loan-cum-investment deal. Kothari said he was introduced to Raj Kundra by a mutual acquaintance and was later asked to invest in Best Deal TV with the promise of monthly returns in addition to repayment of his principal amount.
According to Kothari, he transferred the funds in two instalments in 2015—₹31.95 crore in April and another ₹28.53 crore in September—directly into the company’s bank accounts.
In 2016, a year after the transfers, Shilpa Shetty resigned from the company and learned that insolvency proceedings had been initiated against Best Deal TV over allegations of cheating another investor. Despite repeated attempts, Kothari claimed he never recovered his money and alleged that the funds were siphoned off for the couple’s personal use.
Following his complaint, the Mumbai Police registered a case against Shetty and Kundra under Sections 403 (dishonest misappropriation of property), 406 (criminal breach of trust), and 34 (common intention) of the Indian Penal Code.
Shilpa Shetty and Raj Kundra deny allegations
Through their advocate Prashant Patil, the couple has strongly refuted the charges, dismissing the case as “baseless” and “malicious.”
“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 in a statement.
Referring to the transaction as an “old deal,” he added that the company subsequently went into financial trouble and became entangled in a long legal dispute before the National Company Law Tribunal (NCLT). “The company had already received a liquidation order, which was also placed before the police department,” he noted.
What is a lookout circular?
A Lookout Circular is a preventive mechanism used by investigating agencies to track or restrict the movement of individuals facing probes. It alerts immigration and border control authorities to stop them from leaving the country.
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