Daijiworld Media Network - Mumbai

Mumbai, Oct 10: Businessman Raj Kundra, embroiled in a police case for allegedly defrauding a businessman of nearly Rs 60 crore in a loan-cum-investment deal, has claimed that his business suffered significant losses due to demonetisation in 2016, sources told NDTV on Friday.

During questioning by the Economic Offences Wing (EOW) of Mumbai Police, Kundra said his company, which traded in electrical and household appliances, faced severe financial strain post-demonetisation, which hampered its ability to repay borrowed funds.

The case pertains to Best Deal TV Private Limited, a now-defunct home shopping and online retail platform, co-founded by Kundra and his wife, Bollywood actor Shilpa Shetty. Businessman Deepak Kothari alleged that between 2015 and 2023, he was induced to invest Rs 60 crore in the company, but the funds were allegedly diverted for the couple’s personal use.

Shetty was also questioned for over four hours at her residence on October 4, during which she told the police that she had not been involved in the company’s affairs. Kundra has been questioned twice and may be summoned again in the coming weeks.

Last month, the couple approached the Bombay High Court seeking suspension of the Look Out Circular (LOC) to travel abroad for professional and leisure commitments. The bench, however, refused permission for leisure trips while noting that the accused had cooperated with the investigation. The court said the plea would be considered only after the full Rs 60 crore is deposited, and posted the matter for further hearing on October 14.