Mumbai Court Directs Police To Probe Cheating Allegations Against Shilpa Shetty, Raj Kundra

A court in Mumbai recently directed the police to investigate the allegations of cheating made by a bullion trader and register FIR if a cognizable offense is found against actor Shilpa Shetty and her husband Raj Kundra.

Designated Judge NP Mehta under the MPID Act observed, “Prima facie cognizable offence is made out. Concern police station is directed to investigate the allegations made in the complaint and if any cognizable offence is found to have been committed by accused persons, then register F.I.R. against them under relevant Section of IPC and MPID Act.”

The complainant Prithviraj Saremal Kothari, Managing Director of M/s. Riddhi Siddhi Bullions Ltd., filed a complaint against M/s. Satyug Gold Private Limited and its founders, including the well-known Bollywood personality Shilpa Shetty Kundra, her husband Raj Kundra, and other associates for alleged fraud, breach of trust, and conspiracy.

The complainant is in the gold business and has accused Satyug Gold Private Limited, founded by the Kundras, of launching a fraudulent investment scheme in 2014. The scheme promised investors delivery of gold at a discounted rate upon maturity, regardless of market price fluctuations, according to the complaint.

The complaint states that Kothari invested Rs. 90,38,600 in the scheme with the assurance of receiving 5000 gm of 24-carat gold upon the completion of five years. Despite multiple assurances and a written contract, the promised gold was not delivered on the maturity date as per the complaint.

Reports surfaced that the scheme was discontinued, and other investors also faced non-delivery issues. The complainant's repeated requests for delivery or refund were met with delays and eventual refusal.

The complaint outlines the sequence of events leading to the legal action, including the accused's alleged refusal to deliver the gold or refund the principal amount. Instead, a postdated cheque for the principal amount was issued, which the complainant claims resulted in a loss of Rs. 1,50,00,000 based on the current gold rate.

The complainant has sought legal action against the accused under Sections 405, 406, 409, 415, 417, 420, 422 r/w Section 120-B of the IPC as well as under Sections 3 and 4 of The Maharashtra Protection of Interest of Depositors Act, 1999.

Despite filing complaints with the police, no FIR has been registered, prompting him to seek the court's intervention for a fair investigation and appropriate legal action against the accused, the complainant alleged.

Advocate Harikrishna Mishra represented the complainant while special public prosecutor Seema Deshpande represented the State.

Case no. – Order On Miscellaneous Application No. 768 of 2022

Case title – Prithviraj Saremal Kothari v. M/s. Satyug Gold Private Limited and Ors.

Click Here To Read/Download Order