The Raj Kundra Fraud case took a fresh turn on Friday as the businessman informed the Mumbai police’s Economic Offences Wing (EOW) that he couldn’t repay the loan in 2016 because of demonetisation. Where previous currency notes of ₹500 and ₹1000 were banned.
Actor turned businessman, Raj Kundra, is facing investigations in a fraud case of ₹60 crore filed by Bombay-based businessman Deepak Kothari. Kothari had previously lent the couple funds amounting to ₹60 crore in a loan-cum-investment deal linked to a now-defunct online shopping platform, which they used for personal expenses and failed to repay.
What did Kundra say?
As per a report by the Indian express, Kundra claimed that over Rs 20 crore was spent on advertising for the firm, with a similar amount invested in setting up and employing staff. However, the business struggled significantly due to the demonetisation introduced in 2016, as customers lacked cash on hand, and the company primarily operated on a ‘Cash on Delivery’ model, resulting in substantial losses.
The latest update forms the most recent addition to a string of ‘confessions’ made by Kundra to the investigative agencies during questioning. Previously, Kundra had said that he failed to make the repayment as the loan had been used to pay the fees of actresses Neha Dhupia, Bipasha Basu and Shilpa Shetty. Parts of these payments were recently also traced to banned websites like Alt Balaji by the EOW.
Previous developments in the case
This comes after the couple filed a plea in the high court seeking the quashing of the LOC issued against them in connection with an FIR over an alleged fraud of ₹60 crore. The Bombay High Court had previously ordered Shetty and Kundra to deposit ₹60 crore if they wish to travel to Los Angeles in the United States or any other foreign location. Denying permission to travel, the court also refused to pause the Look Out Circular (LOC) issued against them. In its last hearing on Wednesday, the high court had adjourned the matter until October 14.