Raj Kundra Claims Demonetization Led to Inability to Repay Rs 60 Crore Loan in Fraud Case

Raj Kundra has undergone two rounds of questioning in the case (File photo)

Mumbai:

Businessman Raj Kundra, currently facing allegations of defrauding a businessman of approximately Rs 60 crore in a loan-investment arrangement, has attributed his inability to repay the funds to substantial business losses incurred following demonetization, according to sources who spoke with NDTV on Friday.

During his interrogation by Mumbai Police's Economic Offences Wing (EOW), which is conducting the fraud investigation, Kundra explained that his company dealt in electrical and household appliances and experienced significant financial setbacks after the central government implemented demonetization in 2016.

The 50-year-old businessman stated that the resulting financial crisis rendered his company unable to repay the borrowed funds.

Kundra has already faced two rounds of questioning and is expected to be summoned again in the coming weeks. His wife, Bollywood actress Shilpa Shetty, was also interrogated for over four hours at their residence on October 4.

A case was filed against both Kundra and Shetty, former directors of the now-defunct Best Deal TV Private Limited (a home shopping and online retail platform), in Mumbai on August 14. They are accused of defrauding businessman Deepak Kothari of nearly Rs 60 crore in a loan-cum-investment arrangement.

Kothari alleges that between 2015 and 2023, they persuaded him to invest Rs 60 crore in Best Deal TV Private Limited, but the funds were subsequently used for their personal benefit.

During her questioning, Shetty informed the police that she was not involved in managing the affairs of the company she co-founded with her husband.

The couple recently petitioned the Bombay High Court to suspend the Look Out Circular (LOC) issued against them by police in this case, which would allow them to travel abroad for professional commitments and personal trips.

However, on Wednesday, a bench comprising Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad stated they could not permit leisure travel when the couple faces accusations of cheating and fraud.

The couple's legal representative informed the court that only one trip to Phuket was for leisure purposes, while all other planned trips were for professional work. The lawyer emphasized that the couple has cooperated with the investigation and appeared for questioning when required.

The high court noted that the couple has avoided arrest specifically because of their cooperation.

The bench requested documentation, such as invitations or other communications, regarding the professional events that Shetty needed to attend.

The high court indicated it would only consider the petition after the entire sum of Rs 60 crore is deposited.

"Deposit the entire amount of Rs 60 crore, then we will consider the plea," stated the bench, scheduling the next hearing for October 14.

The couple's petition seeks suspension of the LOC from October 2025 to January 2026.