Bombay HC Orders Shilpa Shetty and Raj Kundra to Deposit Rs 60 Crores for Travel and LOC Relief
The Bombay High Court has issued a directive to actress Shilpa Shetty and her husband, businessman Raj Kundra, requiring them to either deposit Rs 60 crore or provide a continuous bank guarantee from a nationalized bank. This order comes as the couple seeks permission to travel to London for Kundra’s father, who is undergoing serious medical treatment. The court’s decision reflects concerns about their return to India amid ongoing legal issues related to a fraud complaint.
Background of the Legal Case
The Lookout Circular (LOC) against Shetty and Kundra is linked to a fraud complaint filed by Deepak Kothari, the Director of UY Industries Pvt Ltd. Kothari alleges that the couple persuaded him to invest in their now-defunct venture, Best Deal TV Pvt Ltd, between 2015 and 2023. He claims that the Rs 60.48 crore he provided as a loan, backed by Shetty’s personal guarantee, was misappropriated during a period of significant business losses. Despite repeated demands for repayment, Kothari asserts that he has not recovered any funds. The Economic Offences Wing (EOW) of the Mumbai Police is currently investigating the matter and issued the LOC to ensure the couple’s presence for legal proceedings.
Court Hearing and Arguments
During a recent court hearing, Senior Advocate Abad Ponda, representing Shetty and Kundra, argued against the necessity of depositing the full amount. He proposed that a surety or a reasonable alternative could suffice, emphasizing the medical urgency of their trip and their commitment to return to India. However, the bench, consisting of Justices AS Gadkari and RR Bhonsale, rejected these partial measures. They insisted that the couple must either deposit the entire sum or provide a bank guarantee before any travel permissions could be granted. The court has scheduled further instructions for the following week.
Implications of the Case
The case against Shetty and Kundra has drawn significant attention, particularly given the couple’s celebrity status. Best Deal TV, which launched in 2015 with endorsements from Shetty and former partner Akshay Kumar, reportedly lost Rs 100 crore within 18 months, leading to allegations of fund diversion for personal expenses or to related entities. While no arrests have been made, previous requests to quash the FIR or seek relief from the LOC have been denied, contingent on repayment of the alleged debts. This situation underscores the increasing scrutiny faced by celebrity-backed ventures, especially in the wake of business failures following the demonetization policy in India.
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