In a major development, the Mumbai Police’s Economic Offences Wing (EOW) has issued a Lookout Circular (LOC) against Bollywood actor Shilpa Shetty and her husband, businessman Raj Kundra, in connection with a ₹60 crore financial fraud case. The LOC, a preventive legal measure, was initiated due to the couple’s frequent international travel and is aimed at stopping them from leaving the country while investigations are underway.
The case stems from a complaint filed by Deepak Kothari, director of Lotus Capital Financial Services Limited, a non-banking financial company. Kothari alleged that the couple, through a loan agent known to them, sought a ₹75 crore business loan in 2015 for their company Best Deal TV Pvt Ltd — a home shopping and online retail platform that has since become defunct.
According to the FIR, Kundra and Shetty allegedly persuaded Kothari to route the money as an investment rather than a formal loan to minimize tax implications. They assured him of monthly returns and full repayment of the principal. Based on this, Kothari transferred ₹31.95 crore in April 2015 under a share subscription agreement, and ₹28.53 crore more in September 2015 under a supplementary agreement, totalling ₹60.4 crore. The funds were reportedly credited to Best Deal TV’s HDFC Bank accounts.
Despite initial assurances, Kothari claims he did not receive the agreed returns, and the couple allegedly cited pandemic-related delays. Further complicating matters, Shilpa Shetty reportedly resigned as director in September 2016, and the company was later subjected to insolvency proceedings in 2017 for defaulting on a separate agreement.
The FIR was registered on August 14, 2025, at Juhu police station under Sections 403 (dishonest misappropriation of property), 406 (criminal breach of trust), and 34 (common intention) of the Indian Penal Code. Given the high-value nature of the case, it was transferred to the EOW for further investigation.
A senior IPS officer confirmed that the required documents for the LOC have been shared with immigration authorities. “Once a Lookout Circular is issued, alerts are sent to all airports. If the couple attempts to travel, they will be detained,” the officer stated. Police are also planning to summon the couple next week to record their statements.
This is not the first time Raj Kundra has found himself embroiled in controversy. However, this case, involving both him and Shilpa Shetty, brings fresh scrutiny as authorities look into the possible misappropriation of funds meant for business expansion.
The investigation is ongoing, and further action is expected in the coming weeks as police continue to gather statements and forensic financial data. The LOC ensures the couple remains within India’s jurisdiction during the course of the probe.
