Cops Uncover Evidence of Fund Diversion by Shilpa Shetty and Raj Kundra in Loan Fraud Probe

The Mumbai Police’s Economic Offences Wing (EOW) has reportedly uncovered evidence indicating that actor Shilpa Shetty and her husband, businessman Raj Kundra, diverted funds linked to a ₹60 crore loan fraud case dating back to 2015.

The case was originally filed by businessman Deepak Kothari’s non-banking financial company (NBFC) against Best Deal TV Pvt Ltd, a firm associated with the couple. According to officials, initial findings suggest that the funds borrowed for Best Deal TV were allegedly siphoned off through a network of related entities. The EOW is now planning to commission a forensic audit via an external consultancy to map the complete trail of fund diversion and determine whether the money was used to settle dues of other businesses tied to Shetty and Kundra — including Satyug Gold, Viaan Industries, Essential Bulk Commodities Pvt Ltd, and Statement Media.

Investigators suspect that a portion of the funds was disguised as business expenses — such as payments for broadcasting, warehousing, travel, and office operations — which may have been inflated or falsified. Several vendors, including courier and media service firms engaged by Best Deal TV, reportedly never received payments, despite documentation suggesting otherwise.

Raj Kundra has already been questioned for nearly five hours by the EOW. During the interrogation, he maintained that the ₹60 crore amount was first taken as a loan and later converted into equity. He claimed ₹20 crore went toward broadcasting costs and celebrity endorsements, naming actresses Bipasha Basu and Neha Dhupia as brand ambassadors who were paid through legitimate channels.

However, investigators found inconsistencies in financial records. Despite holding a majority stake in Best Deal TV, Shilpa Shetty allegedly billed the company ₹15 crore as a celebrity endorsement fee. She told officials she was compensated as a model through an advertising agency associated with the firm.

Police also raised concerns about the lack of any formal valuation process before the equity swap with the complainant NBFC, viewing it as a potential red flag.

Kundra reportedly attributed the company’s collapse to losses triggered by demonetisation, stating that Best Deal TV’s heavy reliance on cash-on-delivery orders led to a liquidity crunch. He also claimed that promotional materials and videos featuring celebrities were seized during an earlier investigation into the pornography case handled by the Cyber Crime Cell — a claim now under verification by the EOW.