MUMBAI — December 18, 2025 — In a major escalation of legal troubles for Bollywood actress Shilpa Shetty and her husband, businessman Raj Kundra, the Income Tax (I-T) Department conducted a high-profile raid at their Mumbai residence on Wednesday. The searches are reportedly linked to an ongoing investigation into a ₹60-crore fraud case and alleged tax evasion connected to their hospitality ventures.+1
The raid at the couple’s Juhu home follows a series of enforcement actions across multiple cities.
- Bastian Hospitality Scrutiny: Earlier this week, I-T officials launched searches at Bastian Garden City in Bengaluru and other locations associated with Bastian Hospitality, a brand in which Shetty holds a 50% stake.
- Expansion of Charges: The Mumbai Police’s Economic Offences Wing (EOW) recently added Section 420 (Cheating) of the IPC to the existing FIR against the couple. They were already being investigated for criminal breach of trust and dishonest misappropriation of property.+1
- The Allegation: The case stems from a complaint by businessman Deepak Kothari, who claims he was duped of ₹60.48 crore between 2015 and 2023. He alleges the funds were sought as a loan-cum-investment for the now-defunct “Best Deal TV” but were instead diverted for the couple’s personal use.+1
Shilpa Shetty Breaks Silence
Amidst the raids, Shilpa Shetty released a statement through her team, expressing that she is “deeply saddened” by what she called “baseless attempts” to malign her name.
“My association with the company was strictly in a non-executive capacity, with no role in its operations, finances, or decision-making. In fact, our family loaned nearly ₹20 crore to the company which remains unpaid,” the statement read.
The Bombay High Court has previously directed the couple to deposit ₹60 crore or provide a bank guarantee if they wish to travel abroad, following a Lookout Circular (LOC) issued by the EOW. While the I-T department has not yet released an official statement on the findings of Wednesday’s raid, sources indicate that financial documents and digital records are being scrutinized to trace the alleged “money trail.” The couple maintains that the dispute is purely civil in nature and has filed a quashing petition in the High Court.
