Lookout notice against Shilpa Shetty and Raj Kundra in ₹600m fraud probe: Explained

Dubai: 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. The couple is accused of defrauding a businessman of more than ₹0.6 billion.

A senior police officer confirmed that investigators had been reviewing their travel logs and have now moved forward with the LOC issuance.

Businessman Deepak Kothari alleged that Shilpa and Raj conspired to cheat him between 2015 and 2023. He claimed that funds meant for business expansion were instead diverted to personal use.

According to Kothari, he was first approached in 2015 by agent Rajesh Arya, who sought a loan of ₹0.75 billion at 12% annual interest for Best Deal TV Pvt Ltd, a company linked to the couple.

The agreement allegedly shifted from a loan to an “investment”:

In total, Kothari says he handed over more than ₹0.604 billion, in addition to stamp duty charges.

In April 2016, Shilpa Shetty allegedly provided Kothari with a personal guarantee. By September, she resigned as director of Best Deal TV. Soon after, it was revealed that the company was facing insolvency proceedings worth ₹12.8 million, a detail Kothari claims was hidden from him.

Kothari alleged that when he demanded repayment, Shilpa and Raj avoided the issue. He has accused the couple and their associates of running a well-planned conspiracy to cheat him.

Back in 2015, Bollywood was taken aback when former partners Akshay Kumar and Shilpa Shetty reunited for business. Along with Raj Kundra, they launched Best Deal TV, touted as India’s first celebrity-driven teleshopping channel.

Akshay Kumar said the idea was for celebrities to co-own and sell products they endorsed, while Raj Kundra explained the focus would be on lifestyle, health, fashion, and beauty. Actress Sonakshi Sinha was among the first to join, introducing her own product line.

Despite their history, Akshay and Shilpa told the media they had put the past behind them and were focused on business. Shilpa praised Akshay’s wide appeal, while Akshay described the venture with Raj and Shilpa as “exciting and futuristic.”

Adding to the couple’s woes, Shilpa announced the closure of her iconic Bandra restaurant, Bastian. In an Instagram post, she called it the “end of an era” and invited patrons to a final farewell event.

Ranjit Bindra, CEO of Bastian Hospitality, clarified that the closure is not the end but a transition. The Bandra outlet will be replaced by Ammakai, a South Indian specialty restaurant, while a new Bastian Beach Club will open in Juhu by mid-October.

Shilpa clears the air

Amid speculation that the closure was linked to the fraud case, Shilpa posted a video stressing that “Bastian is going nowhere.” She said the brand was simply expanding, with new ventures keeping the legacy alive.