The recent legal storm surrounding Bollywood actress Shilpa Shetty Kundra and her husband Raj Kundra intensified this week following reports of an Income Tax (IT) department search at their Mumbai residence, a development their legal team has swiftly moved to downplay.
Amidst a high-stakes ₹60 crore fraud case, the couple’s spokesperson and legal counsel, Advocate Prashant Patil, issued a firm clarification on December 18, 2025, denying that any “raid” had taken place.
Instead, Patil characterized the presence of IT officials at the premises as a “routine verification” and a standard follow-up procedure, emphasizing that no enforcement action or seizure had occurred.
The lawyer’s statement was notably sharp, warning that any attempt to “mischievously” link this routine tax visit to the ongoing Economic Offences Wing (EOW) investigation would be met with legal consequences.
This pushback comes at a critical time for the actress, as media narratives have increasingly intertwined her diverse business interests with the criminal allegations she currently faces.
The core of the legal trouble stems from a First Information Report (FIR) registered by the Mumbai Police EOW based on a complaint by businessman Deepak Kothari, the director of Lotus Capital Financial Services.
Kothari alleges that between 2015 and 2023, he was induced to invest approximately ₹60.48 crore into Best Deal TV Pvt. Ltd., a home shopping venture where Shilpa and Raj were directors.
According to the complaint, the couple promised significant returns and repayment of the principal, but the funds were allegedly diverted for personal use rather than business expansion.
The EOW recently escalated the case by adding Section 420 (cheating) of the IPC, following initial charges of criminal breach of trust.
Shilpa Shetty has since taken to social media to label these accusations as “baseless and motivated,” arguing that the dispute is purely civil and arises from a business failure and subsequent insolvency proceedings that are already being adjudicated in the High Court and the National Company Law Tribunal (NCLT).
Adding another layer of complexity to the situation is a secondary investigation in Bengaluru involving the high-end restaurant brand Bastian, in which Shilpa holds a 50% stake. On December 11, 2025, the Bengaluru police booked the management of Bastian Garden City for operating beyond permitted hours after CCTV footage of a late-night altercation between patrons surfaced.
Reports suggest that the IT department’s recent “verification” may be linked to Bastian Hospitality rather than the Best Deal TV fraud case.
Officials reportedly conducted searches at multiple locations associated with the brand across Mumbai, Pune, and Goa to scrutinise financial transactions and compliance.
For the Kundra family, this latest episode is part of a longer history of legal scrutiny, including a previous Enforcement Directorate (ED) investigation and Raj Kundra’s highly publicised 2021 arrest.
However, this current ₹60 crore case carries significant stakes, with a Lookout Circular (LoC) reportedly issued to prevent the couple from travelling abroad without judicial intervention. As the High Court prepares to hear its quashing petition, the industry remains divided.
While some see the IT visit as a standard part of investigating high-net-worth individuals, others view it as part of a tightening net around the couple’s business empire. For now, Shilpa Shetty continues to balance her professional commitments with these legal hurdles, urging the media to exercise restraint while the matters remain sub-judice.
About the Author
