Mumbai, India - In the ongoing ₹60 crore fraud case involving Shilpa Shetty and her husband, Raj Kundra, the Bombay High Court has asked the actress to file an affidavit clarifying her alleged links to Kundra's firm. This development occurred during a hearing where Shetty claimed she had no connection to her husband's company and requested the court to cancel the Lookout Circular (LOC) issued against her.

The case stems from a complaint filed by Deepak Kothari, a Mumbai-based businessman and director of Lotus Capital Financial Services, who alleges that between 2015 and 2023, Shetty and Kundra convinced him to invest ₹60 crore in their now-defunct company, Best Deal TV Pvt Ltd. Kothari claims that instead of using the investment to grow the business, the funds were diverted for personal expenses. The Economic Offences Wing (EOW) of the Mumbai Police is currently investigating the case, having registered it under sections of the Indian Penal Code dealing with criminal breach of trust, misappropriation, and common intention.

The issuance of Look-Out Circulars (LOCs) against Shetty and Kundra effectively restricts their international travel while the financial crime probe is in progress. The couple had petitioned the court for permission to travel to Colombo and other places for business purposes and sought the quashing of the LOC.

During a previous hearing, the Bombay High Court bench, comprising Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad, had asked the couple to deposit ₹60 crore if they wished to travel abroad. The court also sought details and formal communications regarding their "business trip" on an affidavit. Raj Kundra, however, denied reports that the court had directed them to deposit any amount, stating that the court had merely requested details regarding the purpose of their travel.

In a recent statement to the EOW, Raj Kundra cited the 2016 demonetization policy as the reason he could not repay the loan. He claimed that the business suffered significant losses due to the cash crunch following the ban on ₹500 and ₹1,000 currency notes, as the company primarily operated on a 'Cash on Delivery' model. Kundra had previously stated that the loan was used to pay fees to actresses Neha Dhupia, Bipasha Basu, and Shilpa Shetty.

Shilpa Shetty has maintained that she had no active role in the operations of Best Deal TV Private Limited and had little knowledge of the alleged financial irregularities. She resigned from the company in September 2016.

The court has now asked Shetty to file a written submission by October 16, clarifying her claimed lack of connection to Raj Kundra's company. The court indicated that if Shetty maintains no link to the company, Raj Kundra should submit an affidavit confirming it. The investigation is ongoing, and the EOW continues to gather evidence and interview witnesses.