MUMBAI, October 13 — Businessman and actor Shilpa Shetty’s husband, Raj Kundra, has told investigators that India’s 2016 demonetisation played a key role in his inability to repay a Rs 60 crore loan. The statement was made during questioning by the Mumbai Police’s Economic Offences Wing (EOW) in a fraud case filed by businessman Deepak Kothari.
Kothari alleges that Kundra and Shetty borrowed Rs 60 crore under a loan-cum-investment agreement for a now-defunct online shopping venture. The couple is accused of diverting large sums for personal use and failing to repay the amount.
According to a report by The Indian Express, Kundra told investigators that over Rs 20 crore went into advertising, with additional funds spent on operations and staffing. He said the business suffered major setbacks after the government banned Rs 500 and Rs 1,000 notes in 2016.
“The platform operated primarily on a cash-on-delivery model, which collapsed when consumers lacked cash, leading to substantial losses,” Kundra reportedly stated.
This is not the first explanation Kundra has provided. Previously, he claimed that portions of the loan were used to pay fees to actresses Neha Dhupia, Bipasha Basu, and his wife Shilpa Shetty. Investigators have also traced some of the funds to transactions involving banned streaming platforms such as Alt Balaji, adding to scrutiny of the case.
In a related development, the couple recently approached the Bombay High Court to quash a Look Out Circular (LOC) issued against them in connection with the FIR. The court, however, denied permission for them to travel abroad, including to Los Angeles, unless they deposited Rs 60 crore. The High Court also refused to stay the LOC, and the matter has been adjourned until October 14.
