₹60 Cr Fraud: Raj Kundra’s Employees to Face EOW Questioning

The investigation into the alleged ₹60-crore fraud case involving Bollywood actor Shilpa Shetty and her husband, businessman Raj Kundra, has escalated with the Mumbai Police’s Economic Offences Wing (EOW) summoning multiple employees of Kundra’s firm, Best Deal Private Limited, for questioning. This move signals a deeper examination of the company’s financial trail and operational claims.

Key Employees Under Scrutiny

According to reports, the EOW has issued summons to four employees of Best Deal Private Limited. These individuals reportedly held senior positions within the company during the period under investigation, which spans from 2015 to 2023.

• One employee has already appeared before the EOW and recorded their statement.
• The remaining three employees have been directed to present themselves for questioning in the coming days.

Investigators believe the testimony of these senior staff members is crucial for establishing the flow of funds and verifying the financial claims made by the accused.

The Focus of the EOW Investigation

The core of the EOW’s questioning is aimed at uncovering the complete money trail and checking the veracity of financial statements provided by the company’s management, including Raj Kundra. Specific areas of focus include:

• Verification of Expenses: The EOW is scrutinising Kundra’s claim that a substantial amount, reportedly ₹20 crore, was spent on furnishing the company’s offices. The employees’ statements are expected to help verify this expenditure.
• Source of Salaries: Investigators are examining how the company’s staff were paid, attempting to ascertain whether salaries came from the firm’s legitimate business earnings or from other, possibly undisclosed, sources.
• Business Justification: The EOW is trying to determine if Best Deal Private Limited, which operated as a home-shopping and online retail platform, had sufficient business orders and clients to justify taking a loan-cum-investment of such a large sum.

The agency is also planning to question product suppliers and companies that advertised with Best Deal Private Limited to corroborate the investment claims and financial transactions.

Background of the Case

The case stems from a complaint filed by Mumbai-based businessman Deepak Kothari, who alleged that Shilpa Shetty and Raj Kundra, both former directors of the now-defunct Best Deal TV Private Limited, duped him of approximately ₹60.48 crore.

The complainant claims the couple approached him for a loan-cum-investment to expand the business, assuring him of monthly returns and principal repayment. Kothari transferred the funds in two tranches between 2015 and 2016. However, he alleges the couple later used the money for personal benefit instead of business development, with no returns forthcoming.

Raj Kundra, during earlier questioning, reportedly attributed the company’s financial distress and inability to repay the funds to heavy losses suffered following the 2016 demonetisation policy, claiming the business was heavily reliant on cash-on-delivery transactions.

What Happens Next?

The EOW officer has indicated that once the statements of all the summoned employees, suppliers, and advertisers are recorded, the investigating team will assess the collected evidence. Based on their findings, the EOW will then decide whether Raj Kundra needs to be recalled for further interrogation to address any inconsistencies found in the employees’ testimonies and the company’s financial records.

The ongoing probe and the recent summoning of employees underscore the gravity of the allegations and the authorities’ commitment to a thorough investigation into the alleged financial misconduct.