Bombay HC Conditions Lift of Lookout Circular on Rs. 60 Crore Deposit by Shilpa Shetty, Raj Kundra
Bombay High Court Conditions LOC Relief for Shilpa Shetty, Raj Kundra on Rs. 60 Crore Security
The Bombay High Court has directed Bollywood actor Shilpa Shetty and her husband, businessman Raj Kundra, to deposit Rs. 60 crore or furnish an equivalent continuous bank guarantee from a nationalised bank if they wish to have the Lookout Circular (LOC) against them lifted.
The requirement was observed during a hearing on the couple’s plea seeking relief from the LOC, which currently bars them from travelling abroad amid an ongoing investigation into alleged financial wrongdoing.
The LOC was issued by the Mumbai Police’s Economic Offences Wing (EOW) in connection with a fraud complaint involving approximately Rs. 60 crore.
The case pertains to allegations that the couple induced an investor to provide funds in connection with their now-defunct enterprise but failed to return the money, leading to accusations of financial misconduct.
In their petition before the High Court, Shetty and Kundra sought interim relief from the LOC so they could travel to the United Kingdom, citing a medical need to attend to Kundra’s ailing father.
It was contended that the father’s health has reportedly deteriorated due to a complex medical condition that has required specialised procedures. The couple argued that their proposed travel was for compelling compassionate reasons rather than leisure.
However, the court made it clear that it would not consider lifting the LOC unless the couple demonstrated their commitment to remaining within the jurisdiction of Indian law enforcement by securing the full amount that forms the subject matter of the investigation. It directed that either Rs. 60 crore be deposited in court or that the petitioners provide a continuous bank guarantee of the same value from a nationalised bank. Counsel for Shetty and Kundra indicated they would take instructions on furnishing the bank guarantee.
The petitioner’s counsel argued against the requirement that the entire alleged amount be deposited as a condition for temporary relief, asserting that the trip was necessary for medical purposes and that there should be flexibility in the conditions imposed.
The LOC was issued at the request of the EOW as part of its probe into the underlying complaint filed by a businessman alleging that Shilpa Shetty and Raj Kundra, through their business activities, persuaded him to invest significant funds into the company’s operations with the promise of returns that did not materialise.
The complaint asserts that money was given between 2015 and 2023 for investment purposes but was ultimately not repaid, leading to the fraud allegation.
The couple has also separately challenged the FIR and sought quashing of the charge in the case.
They contended that the complaint was based on distorted facts, maliciously filed, and intended to extort money by alleging criminality where only a business loss had occurred.
A Lookout Circular is a mechanism by which investigating agencies request the immigration authorities to prevent a person from leaving India when they are the subject of ongoing criminal proceedings or investigations.
Its purpose is to ensure that a person remains within the reach of Indian law enforcement while inquiry or prosecution continues.
By conditioning the lifting of the LOC on a substantial financial deposit or security, the High Court has underscored the gravity of the allegations and placed the onus on the petitioners to demonstrate that they will not evade the process of investigation and eventual trial, if any.
While the current direction is primarily procedural, its practical effect is significant; unless Shilpa Shetty and Raj Kundra comply with the financial condition, they will remain subject to travel restrictions outside India.
The matter is expected to return to the High Court when the petitioners respond on whether they are in a position to provide the bank guarantee or deposit in accordance with the court’s directive.