India’s Enforcement Directorate (ED) has intensified its investigation into businessman Raj Kundra, the husband of Bollywood actor Shilpa Shetty, by conducting raids at 15 locations, including Kundra’s Juhu residence.
The searches are part of the agency’s investigation into the pornography case and allegations of money laundering against the Indian businessman, according to The Indian Express
The money laundering case, registered in May 2022, is linked to an FIR filed against Kundra by the Mumbai police in 2021. The allegations claim that Kundra was running a pornography racket, producing and distributing explicit content through subscription-based mobile apps like HotHit Movies and Hotshots.
The latter was developed by Kundra’s firm, Armsprime Media Private Limited, and sold to his brother-in-law, Pradeep Bakshi’s UK-based company.
The ED’s current investigation extends beyond the pornography allegations, delving into financial transactions. The agency is scrutinising Kundra’s involvement in a massive Bitcoin investment fraud case, which saw investors losing an estimated INR66 billion in 2017.
The scheme reportedly promised a 10 per cent monthly return in Bitcoins, which were to be used for mining activities. However, the funds were allegedly misappropriated, with the accused concealing the stolen Bitcoins in obscure wallets.
In April 2024, the ED provisionally attached Kundra’s assets worth INR977.9 million under the Prevention of Money Laundering Act. These include a luxurious flat in Mumbai’s Juhu area, a residential bungalow in Pune, and equity shares. The Juhu property is registered in his wife’s name.
Kundra also faced legal troubles in February 2021, when the Mumbai Police Crime Branch conducted a raid on a Madh Island bungalow, allegedly used for shooting pornographic films. Subsequent investigations identified Kundra as a key conspirator, leading to his arrest in July 2021.
He was charged alongside other accused individuals, spending two months in Mumbai’s Arthur Road Jail before being granted bail in September the same year.
The current raids are part of the ED’s efforts to uncover more evidence and trace additional financial links in the pornography and Bitcoin fraud cases. Properties associated with Kundra’s associates are also being searched as the agency examines potential overseas financial transactions and the concealment of funds.
