Seems like trouble for Bollywood actor Shilpa Shetty and her businessman husband Raj Kundra refuses to die down. Just a day after news broke that the couple was revamping Mumbai's Bandra Bastian restaurant, they were hit with fresh legal trouble.
On Friday, the Mumbai Police issued a Lookout Circular (LOC) against Shilpa Shetty and Raj Kundra in connection with an alleged ₹60 crore cheating case linked to their now-defunct company, Best Deal TV Pvt. Ltd.
According to the Economic Offences Wing (EOW), the LOC was issued because of the couple's frequent international travel.
Allegations
Businessman Deepak Kothari accused the couple of taking ₹60 crore from him between 2015 and 2023 under the pretext of expanding their business, but instead using the funds for personal expenses. He alleged the couple initially took the money as a loan, later reclassified it as an investment for tax benefits, and failed to return it.
As per reports, Deepika Kothari claimed he was promised repayment with 12% annual interest, and that Shilpa Shetty personally gave him a written guarantee in April 2016. However, just a few months later, she resigned as a director of the firm.
Adding to the controversy, Deepika Kothari alleged he later discovered an ongoing insolvency case worth Rs 1.28 crore against the company, of which he had no prior knowledge.
Best Deal TV launch and failure: Timeline
In 2015, Bollywood was surprised when ex-lovers Akshay Kumar and Shilpa Shetty came together for a business venture, despite their very public and bitter breakup years earlier. Along with Raj Kundra, they launched Best Deal TV, touted as India's first celebrity-based teleshopping channel.
The channel aimed to sell lifestyle, fashion, health, and beauty products endorsed and co-owned by celebrities. Stars like Sonakshi Sinha were among the first to come on board. Products were priced between Rs 2,000 and Rs 7,000 and sold via a cash-on-delivery model, targeting middle- and upper-class households.
At the launch, Akshay Kumar had explained, "Raj Kundra and I thought, instead of running after brands, why not create our own brands that celebrities can endorse and sell on TV?"
Raj Kundra added that all products (except imported mobile phones) would be manufactured in India, ensuring exclusivity.
The Impact of Demonetisation
Despite its promising start in March 2015, Best Deal TV soon faced financial trouble. The 2016 demonetisation dealt a major blow to its cash-on-delivery model. Business declined sharply, and by December 2016, the company suspended operations.
On December 15, 2016, Raj Kundra stepped down as CEO, writing in his resignation letter:
"All good things come to an end, I guess. We nearly conquered the industry—so close, yet so far. Demonetisation, though a bold and much-needed step, unfortunately came at a very bad time."
The Current Case
Nearly a decade later, the failed venture has come back to haunt Shetty and Kundra. On August 14, Mumbai Police registered a case against the couple for allegedly duping Deepak Kothari of ₹60.40 crore.
Their lawyer has strongly denied the charges, describing them as an attempt to tarnish the couple's reputation. He also stated that legal action was being initiated against those responsible for filing the case.
