Couldn't Repay Loan After Note Ban Loss: Raj Kundra On 60 Crores Fraud Case
Businessman Raj Kundra, who is facing a police case for allegedly duping a businessman of nearly Rs 60 crore in a loan-cum-investment deal, has said that his business suffered heavy losses due to demonetisation, sources told NDTV on Friday.
During questioning by the Mumbai Police's Economic Offences Wing (EOW), which is investigating the fraud case, Kundra said his company traded in electrical and household appliances and faced significant losses after demonetisation, which was implemented by the Centre in 2016.
The 50-year-old businessman said the company was unable to repay the borrowed funds due to the financial crisis.
Kundra has so far been questioned twice in the case and is likely to be summoned again in the next few weeks. His wife and Bollywood actor Shilpa Shetty was also interrogated for more than four hours at her residence on October 4.
A case was registered against Kundra and Shetty, who were directors of now-defunct Best Deal TV Private Limited, a home shopping and online retail platform, in Mumbai on August 14 for allegedly duping businessman Deepak Kothari of nearly Rs 60 crore in a loan-cum-investment deal.
Kothari alleged that between 2015 and 2023, they had induced him to invest Rs 60 crore in Best Deal TV Private Limited, but the amount was used for their own personal benefits.
During her questioning, Shetty told the police that she did not look into the affairs of the company she co-founded with her businessman husband.
The couple last month filed a petition in Bombay High Court seeking suspension of the Look Out Circular (LOC) issued against them by police in the case so that they can travel for their professional commitments and leisure trips abroad.
A bench of Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad on Wednesday, however, said it cannot permit leisure trips when the duo is accused in the cheating and fraud case.
The couple's lawyer told the court that only one trip to Phuket was for leisure, but the rest of the trips were all for professional work. The lawyer added that the couple has cooperated with the probe and has also appeared for questioning.
The high court then said that they have not been arrested because of their cooperation.
The bench also sought a copy of the invitation or any other form of communication for the professional events that Shetty had to attend.
The high court then said it would consider the petition only after the entire amount of Rs 60 crore is deposited.
"Deposit the entire amount of Rs 60 crore, then we will consider the plea," the bench said, posting the matter for further hearing on October 14.
The couple's petition has sought suspension of the LOC from October 2025 to January 2026.
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