Shilpa Shetty & Raj Kundra accused of Running Fake Gold Scheme

Shilpa Shetty and her husband Raj Kundra have become embroiled in a fresh controversy after a Mumbai court directed police to probe a complaint against the duo in an alleged fraud case.

The Bollywood couple are accused of defrauding an investor in a gold scheme.

According to reports, additional sessions judge NP Mehta noted that “prima facie cognisable offence is made out” against Raj Kundra and Shilpa Shetty, the company founded by them (Satyug Gold Private Limited) as well as two directors and an employee of the firm.

The court has reportedly directed the Bandra Kurla Complex police station to probe the charges.

The complaint had been filed by Prithviraj Kothari, the managing director of Riddhi Siddhi Bullions. 

The court has asked the police to register an FIR against the accused under relevant sections of the Indian Penal Code for cheating and criminal breach of trust.

In the complaint, Prithviraj Kothari claimed that in 2014, Shilpa Shetty and Raj Kundra launched a scheme.

What the scheme entailed was that anyone willing to invest would be required to make a complete payment of gold at a discounted rate upfront at the time of application.

Mr Kothari said an agreed quantity of gold would be delivered on the maturity date.

As a result, he invested Rs. 9,038,600 (£85,000) under a five-year plan on the assurance that he would get 5,000 grams of 24-carat gold on April 2, 2019.

However, Mr Kothari claimed the promised amount of gold was never delivered to him on the maturity date and even after it.

Calling it “an utterly bogus scheme”, Mr Kothari accused the duo of having conspired with each other and committing offence.

While an investigation is underway, this is not the first time that Shilpa Shetty and Raj Kundra have faced fraud allegations.

In November 2021, they were accused of conning a Mumbai-based businessman out of Rs. 1.51 Crore (£151,000).

The accusations were made by a businessman named Nitin Barai.

He alleged that in July 2014, Shilpa, Raj and Kashiff Khan asked him to invest Rs. 1.51 Crore into SFL Fitness.

The trio claimed that he would earn a profit if he did so.

Mr Barai also alleged that SFL Fitness promised him a franchise and open a gym in Pune. However, it did not come to fruition.

When he wanted his money back, he was allegedly threatened.

Mr Barai subsequently filed an FIR at Bandra Police Station.

Responding to the claims, Shilpa tweeted:

“Woke up to an FIR registered in Raj and my name! Shocked!!

“To set the record straight, SFL Fitness, a venture run by Kashiff Khan.

“He had taken naming rights of brand SFL to open SFL Fitness Gyms around the country. All deals were struck by him and he was a signatory in banking and day-to-day affairs.

“We are not aware of any of his transactions not have we received a single rupee from him for the same.

“All franchisees dealt directly with Kashiff. The company closed in 2014 and was entirely handled by Kashiff Khan.”