Raj Kundra Reports Major Losses Post-Demonetisation, Cites ‘Cash-Dependent Model’ in Rs. 60 Crore Fraud Investigation
Businessman Raj Kundra has reported significant financial losses for his company, Best Deal TV Pvt Ltd, following India’s 2016 demonetisation. During an investigation by the Mumbai Police’s Economic Offences Wing (EOW), Kundra stated that the company’s reliance on cash transactions severely impacted its operations. This disclosure is part of an ongoing Rs. 60 crore cheating case involving Kundra and his wife, actress Shilpa Shetty, as authorities delve deeper into the couple’s financial dealings.
Details of the Investigation
A team from the EOW visited Kundra and Shetty’s residence in Mumbai last week, where they conducted a nearly four-hour interrogation. This visit followed the Bombay High Court’s scrutiny of the couple’s request to travel abroad amid the investigation. Kundra’s initial statement was recorded on September 15, and he provided further insights during a subsequent questioning session. According to a senior police officer, Kundra revealed that his company had invested over Rs. 20 crore in advertising and an equal amount in operational costs. However, the introduction of demonetisation led to the collapse of their cash-on-delivery model, resulting in substantial financial setbacks.
Involvement of Bollywood Celebrities
Kundra’s statement included mentions of several Bollywood actors who participated in advertisements for Best Deal TV. He provided documentation to support his claims, indicating that one actor and two actresses were involved in promotional campaigns. Notably, Shilpa Shetty was featured in one of the advertisements, although Kundra stated that the payment for her appearance had not been credited to her account. Authorities are currently scrutinizing her bank records to verify these transactions and ensure the accuracy of the claims made by Kundra.
Background of Best Deal TV Pvt Ltd
Best Deal TV Pvt Ltd was established as a home shopping and online retail venture but ceased operations a few years after its launch. The ongoing investigation stems from a complaint filed by businessman Deepak Kothari, who accused Kundra and Shetty of taking Rs. 60 crore under the pretense of a business investment without returning the funds. The EOW has issued a Look-Out Circular (LOC) against the couple as part of their efforts to trace the flow of funds and validate the allegations surrounding the company’s financial practices.
Continuing Investigations
As the investigation unfolds, the EOW is focused on uncovering new details related to the alleged misuse of investor funds and the circumstances surrounding the collapse of Best Deal TV. Kundra’s recent statements have added a layer of complexity to the case, particularly regarding the financial implications of demonetisation on his business. The authorities remain committed to thoroughly examining all aspects of the case to ensure accountability and transparency in the ongoing proceedings.
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