Why Shilpa Shetty and Raj Kundra are in trouble: Rs600 million scam, travel ban and reputation at stake

Bollywood couple Shilpa Shetty and Raj Kundra are once again in the spotlight after being linked to a massive Rs600 million scam that’s now reportedly led to a travel ban and fresh legal scrutiny. While Raj Kundra, in an interview with Hindustan Times, claims no Indian court has asked him to deposit Rs600 million in exchange for traveling to the United States for work. He even urged the media to "verify facts before publishing". That said, the case and allegations are getting murkier by the minute. Here's what we know so far ...

Bollywood actor Shilpa Shetty and her husband, businessman Raj Kundra, are under investigation after Mumbai businessman Deepak Kothari accused them of cheating him of around Rs600 million. Kothari has alleged that between 2015 and 2023, he invested the money in a venture promoted by the couple, reportedly linked to their television shopping company Best Deal TV Pvt Ltd. Instead of using the investment to grow the business, he claims, the funds were diverted for personal expenses. His complaint prompted the Mumbai Police’s Economic Offences Wing (EOW) to register a case under sections of the Indian Penal Code dealing with criminal breach of trust, misappropriation, and common intention.

Once the complaint was filed, the EOW launched an investigation and issued Look-Out Circulars, or LOCs, against both Shilpa Shetty and Raj Kundra. These circulars are legal notices that prevent an individual from leaving India while a financial crime probe is in progress. They effectively restrict international travel unless specific permission is granted by the court or investigating agency. The EOW has also begun collecting documents related to the couple’s business dealings to verify Kothari’s claims.

Yes. In late September 2025, Shilpa Shetty was questioned by the Economic Offences Wing for nearly four and a half hours at her Mumbai home. During that interaction, she reportedly provided business papers and clarified her role in the disputed venture. Raj Kundra, who has already been questioned once before, is expected to face further interrogation as investigators piece together the financial trail of the alleged transactions.

The High Court stepped in after the couple petitioned it for permission to travel abroad. Because of the Look-Out Circulars, they cannot leave India without court approval, and both argued that their professional obligations required overseas travel. The bench, however, expressed concern over the seriousness of the Rs600 millio allegations and asked them to file a detailed affidavit outlining the reason for their proposed trip and the nature of their business commitments. The judges made it clear that no travel clearance would be granted until those details were reviewed.

That point has become the most debated aspect of the case. Several media outlets reported that the Bombay High Court had asked Shilpa Shetty and Raj Kundra to first deposit Rs600 million —the amount mentioned in the complaint—before their plea for foreign travel could even be considered. However, Raj Kundra has publicly denied that such an order exists. In a post shared on social media, he said the court had not directed him or Shilpa to deposit any money but had merely requested details of their planned travel. He expressed frustration over what he described as “repeated misrepresentations” of the court’s remarks. The couple are expected to submit their affidavit and supporting documents during the next hearing, which is scheduled for October 14, 2025.

As of now, the Look-Out Circulars remain in place, and neither Shilpa Shetty nor Raj Kundra can travel outside India. The Economic Offences Wing continues its investigation, examining bank records and investment agreements to determine whether the funds were indeed misused. No arrests have been made, and the couple have not been formally charged. Both have maintained that they are innocent and that the allegations are baseless.

The case will come up again before the Bombay High Court in mid-October. At that hearing, the couple’s detailed affidavit explaining their travel plans will be examined, and the court may decide whether to lift or modify the travel restrictions. Meanwhile, the EOW will continue gathering evidence and interviewing witnesses. If investigators conclude that the complainant’s money was wrongfully diverted, the couple could face prosecution for cheating and criminal breach of trust—offences that carry potential prison sentences and heavy fines.

For now, the case remains a high-profile reminder of how quickly celebrity business ventures can turn into criminal controversies, and both Shilpa Shetty and Raj Kundra are fighting to prove that this one has been blown out of proportion.