'Why Don't You Become Approver Against Raj Kundra?': Bombay HC Asks Shilpa Shetty In Rs 60 Crore Fraud Case
The bench asked the actress, "Is Raj Kundra ready to state in an affidavit before the court that you have no connection with his company?..."
Published : October 15, 2025 at 7:52 AM IST
Mumbai: The Bombay High Court on Tuesday refused to grant relief to actress Shilpa Shetty in a financial fraud case involving her husband and businessman Raj Kundra.
When the matter came up before a division bench of Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad, the bench sought clarification on whether Raj Kundra would submit an affidavit confirming she had no connection with the concerned firm, and whether Shilpa Shetty was willing to turn approver in the case against her husband if she wanted permission to travel abroad.
During the hearing, the bench asked the actress, "Is Raj Kundra ready to state in an affidavit before the court that you have no connection with his company? And if you wish to travel abroad, are you ready to become a prosecution witness for forgiveness in this case?"
Notably, the Economic Offences Wing (EOW) of the Mumbai Police has questioned both Shilpa Shetty and Raj Kundra in connection with the case. According to sources, Shilpa was interrogated for around four and a half hours, during which she was asked several questions related to the disputed financial transactions. Her detailed statement has been recorded. Raj Kundra was also questioned for nearly five hours, and his statement has been formally documented.
In her statement, Shilpa Shetty told officers that she had no connection with the company at the time of the transactions and that she had resigned from her post.
However, seeking clarity, the court asked, "Will Raj Kundra state this in affidavit? And if you want permission to travel abroad, why don't you become an approver in this case against Raj Kundra?" the HC bench asked.
The High Court has granted Shilpa Shetty time till Thursday to submit her reply. "You may file your reply before the court by Thursday. Till then, the hearing stands adjourned," the bench said.
Following this, the High Court also heard a plea filed by Shilpa Shetty and Raj Kundra challenging the lookout notice issued against them by the EOW. Their counsel urged the court to suspend the lookout notice for three months, citing their travel plans.
The counsel clarified that they have no intention of fleeing the country. "The case is several years old. Raj Kundra is a British citizen and hotelier with investments in multiple places. He has been invited to Colombo for an event organised by YouTube. Shilpa Shetty and Kundra are planning to attend this event with their son, while their mother and daughter are staying back in India. There is no question of absconding."
However, representing the state government, the public prosecutor opposed the plea, saying, "Serious financial offences are pending against both accused. The state strongly objects to any relief at this stage."
After hearing both the sides, the court refused to grant immediate relief and directed that the matter be taken up again on Thursday.
Details About The Case
Earlier this year in August, a case of cheating was registered against Shilpa Shetty, Raj Kundra and another person following a complaint by Deepak Kothari, Director of Lotus Capital Financial Services Limited.
According to the complaint, the accused cheated Kothari of Rs 60 crore through financial transactions between 2015 and 2023. It has been alleged that the funds were taken under the pretext of expanding their business.
In his complaint, Kothari said he came into contact with Shilpa Shetty and Raj Kundra through an agent named Rajesh Arya in 2015. At that time, the couple happened to be directors of Best Deal TV, and Shilpa Shetty held 87 percent of the company's shares, he stated.
During a meeting, the company had sought a loan of Rs 75 crore from Kothari at an annual interest rate of 12 percent. To avoid taxation, both sides agreed that Kothari would invest the amount and receive monthly returns instead. Accordingly, Kothari first paid Rs 32 crore in April 2015. Later, when taxation issues persisted, a new agreement was executed in September 2015, and by March 2016, he transferred the remaining Rs 28 crore to Best Deal TV, the complainant alleged.
A stamp duty of Rs 3.19 lakh was paid on the total agreement of Rs 60.48 crore, he said.
However, after the agreement was signed, Shilpa Shetty resigned as director in September 2016. Kothari later got to know that the company had already defaulted on a loan of Rs 1.28 crore.
"After several requests went unanswered and there was no repayment, I realised I have been cheated," Kothari stated in his complaint.
Subsequently, he lodged a complaint with Juhu Police, but since the amount involved was over Rs 10 crore, the case was transferred to EOW for further investigation.
The next hearing in the matter is scheduled for Thursday (October 16, 2025).
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