Businessman Raj Kundra, who is facing a police case for allegedly cheating another businessman of nearly ₹60 crore in a loan-cum-investment deal, has said that he could not repay the loan because his business suffered heavy losses due to demonetisation. 

According to the sources of NDTV, Kundra made this statement while being questioned by the Mumbai Police’s Economic Offences Wing (EOW), which is investigating the fraud case.

Kundra explained that his company, Best Deal TV Private Limited, traded in electrical and household appliances and faced major financial problems after the government implemented demonetisation in 2016. The 50-year-old businessman said that because of these losses, the company was unable to repay the borrowed funds.

 So far, Kundra has been questioned twice by the police and may be summoned again in the coming weeks. His wife, Bollywood actor Shilpa Shetty, was also interrogated for more than four hours at their residence on October 4.

A case was registered against Kundra and Shetty in Mumbai on August 14. The complaint came from businessman Deepak Kothari, who claimed that between 2015 and 2023, he was persuaded to invest ₹60 crore in Best Deal TV Private Limited. Kothari alleged that the money was misused by the couple for their personal benefit instead of being used for the company. During her questioning, Shilpa Shetty told the police that she did not actively manage the company’s affairs.

Last month, the couple filed a petition in the Bombay High Court asking for suspension of the Look Out Circular (LOC) issued against them so they could travel abroad for work and leisure.The court, however, said they cannot go on leisure trips while being accused in a cheating and fraud case.

Their lawyer explained that only one trip to Phuket was for leisure, while the rest were for professional purposes. The lawyer also highlighted that the couple has cooperated with the investigation and appeared for questioning.

The high court noted that the couple has not been arrested due to their cooperation. The bench also requested proof of the professional events Shilpa Shetty was attending. The court said it will consider their petition only after the full amount of ₹60 crore is deposited. The matter is scheduled for further hearing on October 14.