Mumbai Police is preparing to issue a Look Out Circular against actress Shilpa Shetty and her husband Raj Kundra. The move is linked to an alleged fraud worth Rs 60.48 crore. A senior police officer confirmed the step on Friday. Authorities stated that both individuals frequently travel abroad. Police believe issuing the circular is necessary to ensure smooth investigation without obstacles.

Purpose Behind the Look Out Circular

A Look Out Circular, commonly known as LoC, restricts international travel. Investigators use this tool to prevent suspects from leaving the country during ongoing inquiries. Police sources mentioned that the action against Shetty and Kundra will help avoid delays. The Economic Offences Wing of Mumbai Police is leading the case.

Background of the Fraud Allegations

On 14 August, Mumbai Police registered a case against Shilpa Shetty, Raj Kundra and an unknown person. The complaint involves businessman Deepak Kothari, a 60-year-old director of Lotus Capital Financial Services Limited. He alleged that the couple defrauded him of Rs 60.48 crore through a loan-cum-investment agreement.

How the Deal Reportedly Took Place

According to the complaint, Kothari met Raj Kundra through a mutual friend. The introduction led to discussions about investment opportunities. Kothari alleged that he was persuaded to transfer funds to the company Best Deal TV Private Limited. The company, linked with Shilpa Shetty and Raj Kundra, has since become defunct. He claimed that the couple promised him monthly returns and repayment of the principal amount.

Role of Best Deal TV Private Limited

Best Deal TV was an e-commerce venture launched by Raj Kundra and Shilpa Shetty. The business attracted investors with promises of rapid growth in the digital marketplace. However, the company allegedly ran into financial difficulties and eventually shut down. Kothari maintains that his investment was misused under the guise of expansion.

The Complaint by Deepak Kothari

Deepak Kothari stated that he trusted the deal based on the couple’s reputation. He transferred the funds expecting secure returns. However, the payments allegedly stopped after initial promises. Kothari then filed a complaint, claiming a loss of Rs 60.48 crore. The police later registered a formal case against the couple and another unidentified person.

Police Investigation So Far

The Economic Offences Wing has collected documents and statements related to the case. Investigators examined financial records of the company. They also studied the money trail to verify the complaint. Officials suggested that further questioning of Shetty and Kundra is essential. The Look Out Circular would ensure their availability for interrogation.

Legal Position of Shilpa Shetty and Raj Kundra

In response to the allegations, the couple’s lawyer, Prashant Patil, issued a statement. He rejected the accusations of fraud. According to him, the disputed amount is linked to an old business deal. He clarified that the company later entered financial distress and faced proceedings before the National Company Law Tribunal.

Defense Statement from the Couple’s Lawyer

Patil explained that no criminal intent was involved. He insisted that all necessary documents, including detailed cash flow statements, were submitted to the Economic Offences Wing. The lawyer emphasized that the agreement in question was purely an equity investment. He argued that the matter should be treated as a commercial dispute rather than a criminal offence.

Difference Between Equity and Loan Agreements

Equity investments differ significantly from loans. In equity deals, investors purchase ownership stakes with profit-sharing opportunities. Returns depend on the company’s performance. Loans, on the other hand, involve guaranteed repayments and interest. Patil highlighted this distinction to support his argument that Kothari’s claim does not constitute fraud.

Reaction Within the Film Industry

The case has attracted considerable attention in Bollywood circles. Shilpa Shetty, a popular actress with a long career, has often stayed in headlines. Raj Kundra, a businessman with diverse ventures, previously faced controversies including a case related to online content. The couple’s involvement in another major financial case has once again brought them into the spotlight.

Possible Impact on Their Public Image

Legal battles often affect the reputation of public figures. Shilpa Shetty has maintained a steady presence in films, television and endorsements. Raj Kundra has engaged in multiple entrepreneurial projects. If the fraud case progresses further, it could impact their professional engagements and brand associations.

Importance of the Case in Financial Crime Monitoring

Cases involving celebrities highlight the reach of financial crimes in India. Fraud investigations involving large sums often set precedents. The alleged fraud of Rs 60.48 crore demonstrates the risks faced by investors. Authorities believe high-profile cases serve as reminders about transparency and accountability in business deals.

What Lies Ahead in the Investigation

With the Look Out Circular expected soon, police aim to prevent any attempt to leave India. Further interrogation and collection of evidence will continue. Investigators may summon more individuals linked to the transactions. The case is expected to move forward in court once charges are finalized.

Challenges for the Prosecution

Fraud cases involving corporate structures often face hurdles. Establishing criminal intent requires strong documentary evidence. Defense lawyers often argue that financial disputes are civil matters. Investigators must therefore provide proof of deliberate deception. The case against Shetty and Kundra will depend on how convincingly prosecutors establish intent.

Broader Concerns Around Investment Scams

Investment scams have become common across India’s financial markets. Many involve promises of high returns and quick profits. Authorities advise investors to verify company credentials before transferring funds. The case against Shetty and Kundra is now seen as another example of such risks.

Media Coverage and Public Interest

The involvement of a Bollywood actress and her businessman husband has intensified media attention. News about celebrity fraud cases tends to dominate headlines. Social media users continue to debate the fairness of accusations. Some support the couple, while others criticize them for alleged misuse of trust.

Previous Legal Issues Faced by Raj Kundra

Raj Kundra faced scrutiny in the past over different controversies. His name surfaced in relation to online content distribution cases. He also faced questioning in relation to other financial matters. These previous incidents add weight to current allegations in public perception.

Shilpa Shetty’s Career Amid Legal Troubles

Despite controversies, Shilpa Shetty has continued her work in films and television. She has appeared as a judge on reality shows and remains a fitness influencer. However, ongoing legal disputes may influence her public engagements. Endorsement deals and new projects often depend on maintaining a clean image.

Statements from Legal Experts

Legal analysts suggest that issuing a Look Out Circular is a precautionary measure. It does not imply guilt but ensures presence during investigation. They also note that large financial disputes often take years to resolve. The distinction between fraud and failed investments will play a crucial role in court.

Expected Legal Proceedings

If police gather sufficient evidence, a charge sheet may follow. The court will then determine whether charges should proceed to trial. Both parties will present their arguments. Observers expect lengthy hearings, given the complexity of financial documents involved.

Wider Implications for Celebrity Entrepreneurs

The case highlights risks associated with celebrity-led businesses. Many investors trust brands linked to famous personalities. However, business ventures often face unpredictable challenges. Legal disputes arise when promised returns fail to materialize. This case is expected to influence future investor behavior in celebrity ventures.

The alleged Rs 60.48 crore fraud involving Shilpa Shetty and Raj Kundra continues to unfold. With Mumbai Police preparing a Look Out Circular, the couple faces increasing legal pressure. Investigators maintain that the action is vital for an unhindered probe. Meanwhile, the couple insists the matter is a commercial dispute without criminal elements. The case will likely remain in focus as financial authorities work to uncover the truth.