Raj Kundra cites demonetisation losses in ₹60 crore cheating case
Businessman Raj Kundra has told investigators that his company suffered massive financial losses following demonetisation, which prevented him from repaying borrowed funds in a ₹60-crore loan-cum-investment deal that is now under police investigation, sources told NDTV on Friday.
Kundra, 50, who has been named in a cheating case along with his wife and actor Shilpa Shetty, reportedly made the statement during questioning by the Mumbai Police’s Economic Offences Wing (EOW). The couple is accused of defrauding businessman Deepak Kothari in connection with their now-defunct company, Best Deal TV Private Limited, a home shopping and online retail venture.
According to sources, Kundra told investigators that his business — which traded in electrical and household appliances — faced severe losses after the Centre’s 2016 demonetisation drive. “The company’s financial condition deteriorated sharply, and we were unable to repay the loans,” Kundra is believed to have said during questioning.
Kundra has so far been interrogated twice and is expected to be called in again in the coming weeks. His wife, Shilpa Shetty, was questioned separately at her residence on October 4 for over four hours.
The police case, filed on August 14, accuses the couple of inducing Kothari to invest nearly ₹60 crore between 2015 and 2023, allegedly using the funds for personal gains instead of the business.
During her questioning, Shetty reportedly told officers that she was not involved in the operational management of Best Deal TV and had no role in its financial decisions.
Meanwhile, the couple has moved the Bombay High Court seeking suspension of a Look Out Circular (LOC) issued against them by the police, citing the need to travel abroad for professional and leisure purposes.
However, a bench of Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad refused to grant immediate relief, observing, “We cannot permit leisure trips when the duo is accused in a cheating and fraud case.”
Their lawyer argued that the couple had cooperated fully with the investigation and clarified that only one of the proposed trips—to Phuket—was for leisure, with the rest related to professional engagements.
The bench, noting their cooperation as a reason for not arresting them, directed the couple to first deposit the entire ₹60 crore allegedly involved in the fraud before the petition could be considered.
“Deposit the entire amount of ₹60 crore, then we will consider the plea,” the court said, adjourning the matter to October 14.
The couple’s plea seeks a suspension of the LOC between October 2025 and January 2026, allowing for international travel.
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WHO LOST MONEY IN DEMONETISATION? ONLY THOSE WHO COULD NOT EXPLAIN THE SOURCE OF MONEY AND HENCE COULD NOT DEPOSIT IT IN BANKS AND HAVE THE AMOUNT CREDITED TO THEIR ACCOUNTS.