Mumbai Police Issues Look Out Circular Against Shilpa Shetty and Raj Kundra in ₹60 Crore Fraud Case

Mumbai, Sept 2025 – The Economic Offences Wing (EOW) of Mumbai Police has issued a Look Out Circular (LOC) against actress Shilpa Shetty and her businessman husband Raj Kundra in connection with an alleged ₹60 crore fraud case.

A senior officer confirmed that the decision followed a review of the couple’s travel records. The LOC is aimed at preventing them from leaving the country while the investigation progresses.

Allegations of a ₹60 Crore Conspiracy

Businessman Deepak Kothari has accused Shetty, Kundra, and their associates of conspiring to cheat him of more than ₹60 crore. According to his complaint, funds provided between 2015 and 2023, ostensibly for business expansion, were diverted to cover personal expenses.

The dispute traces back to 2015, when Kothari was introduced to Rajesh Arya, who allegedly claimed links with the couple’s company, Best Deal TV Pvt. Ltd. Arya initially sought a loan of ₹75 crore at a 12% annual interest rate. However, what began as a loan was later converted into an “investment.”

Flow of Funds

Kothari stated that he transferred his first installment of ₹31.95 crore in April 2015. A second agreement followed in September 2015, after which he paid another ₹28.54 crore between July 2015 and March 2016. In total, he claims to have invested ₹60.48 crore, along with an additional ₹3.19 lakh in stamp duty.

In April 2016, Shetty allegedly signed a personal guarantee, but just months later, in September 2016, she resigned from her post as company director. Soon after, Kothari discovered that the firm was already facing insolvency proceedings over dues of ₹1.28 crore, a fact he alleges was deliberately concealed from him.

When he demanded repayment, Kothari says the couple and their associates began evading him. He has since alleged that the entire transaction was a “well-planned conspiracy” to defraud him.

Investigation Underway

The EOW has registered a case under sections 403 (dishonest misappropriation of property), 406 (criminal breach of trust), and 34 (acts by several persons with common intention) of the Indian Penal Code.

Investigators are currently tracking the money trail and have also questioned the auditor involved in the company’s financial reviews. Officials said further summons may be issued as the case develops.

With the LOC now in place, Shetty and Kundra will not be allowed to leave India without clearance from authorities, ensuring their availability for questioning in the high-profile fraud probe.