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Actor Shilpa Shetty and her husband Raj Kundra are currently in the spotlight following an investigation into an alleged Rs 60-crore financial fraud linked to their now-defunct company, Best Deal TV Private Limited.

Recently, the case gained attention after authorities reportedly conducted searches at several places linked to them, including Man Industries, Bastion restaurant, and Foodlink Caterers in Mumbai, according to Zee Business sources.

The case originates from a complaint filed by Mumbai-based businessman Deepak Kothari, Director of Lotus Capital Financial Services Ltd, a non-banking financial company.

According to the complaint, between 2015 and 2023, Kothari allegedly invested or loaned Rs 60.4 crore to Best Deal TV Private Limited, a home shopping and online retail platform in which Shilpa Shetty and Raj Kundra were directors at the time.

The complainant claims that the funds were provided for business expansion but were instead diverted for personal use. He further alleged that although the transaction was effectively a loan, it was structured as an investment to avoid higher taxation, with promises of assured monthly returns and repayment of the principal.

Mumbai Police registered an FIR at Juhu Police Station, after which the case was transferred to the Economic Offences Wing (EOW) for further investigation.

In a detailed statement issued by her team, Shilpa Shetty has strongly denied all allegations, stating that her role in the company was non-executive and non-operational. She clarified that she was not involved in the day-to-day operations, financial management, decision-making, or signing authority of the company.

Shetty also said she had merely endorsed certain products for the home shopping channel in a professional capacity, adding that payments due to her for these endorsements are still outstanding.

Importantly, Shetty claimed that her family had loaned nearly Rs 20 crore to the company, which also remains unpaid. She termed attempts to link her name to the case as “baseless” and “legally unsustainable,” especially given the nearly nine-year delay in raising criminal allegations.

Raj Kundra has also denied the allegations, calling them “baseless and motivated.” In a public statement, he said the matter is being wrongly given a criminal colour despite being civil in nature.

Kundra confirmed that a quashing petition has already been filed before the Bombay High Court, and that he and Shetty have fully cooperated with the investigators.

According to the defence, the dispute has already been examined under insolvency proceedings at the National Company Law Tribunal (NCLT), which passed a liquidation order against Best Deal TV in October 2024.

Their lawyer maintains that the transaction in question was an equity investment, not a criminal offence, and that all financial records and cash-flow statements have been submitted to the EOW.

The investigation is ongoing, and the matter is currently under review. Both Shilpa Shetty and Raj Kundra have urged the media to report responsibly and allow the legal process to take its course.