Mumbai: Raj Kundra, husband of Bollywood actor Shilpa Shetty, will soon face money laundering and Foreign Exchange Management Act (FEMA) cases against him as Enforcement Directorate (ED) is likely to register cases under these Acts against him.
Sources said the Central agency, mandated to probe financial frauds related cases, may file a case against Kundra under the Prevention of Money Laundering Act (PMLA) and FEMA by the end of this month anytime after July 26. It is learnt that Mumbai Police as per protocol will inform the ED to probe the financial irregularities in the case that also involves violation of foreign exchange.
The ED will take the First Information Report (FIR) copy from Mumbai Police before starting its probe after filing a case. The ED may issue a summon against Kundra under PMLA and FEMA before beginning questioning with him at its Mumbai office.
Kundra, 45, was arrested by the Mumbai Police late on July 19 along with 11 other people on charges related to alleged creation of pornographic films and was placed in police custody till July 23. Currently, the case involves alleged creation of pornographic films and publishing them through some apps.
As the crime branch of the Mumbai Police has claimed before the Mumbai Court that Kundra was making financial gains through this illegal business by taking subscription fees from the users of these apps, the ED will investigate these charges after filing case against him under PMLA.
In its probe, the ED will find out details about the claims made by Mumbai Police over Kundra’s involvement in the financial dealings of the app and its contents based on inputs about several WhatsApp chats.
The director of Kundra’s company Viaan Industries may also be quizzed by the ED in its investigation.
Questioning with Shilpa Shetty cannot be ruled out during ED enquiry as she was learnt to be the director of Kundra’s firm till last year, however, the Mumbai Police has reportedly given her clean chit as they could not establish her involvement in the alleged porn racket.
Kundra has been named as the key conspirator by the Mumbai Police which has slapped charges against him under Sections 420 (cheating), 34 (common intention), 292 and 293 (related to obscene and indecent advertisements and displays) of the Indian Penal Code (IPC) besides relevant sections of the IT Act and the Indecent Representation of Women (Prohibition) Act.
The police has also claimed that three women have come forward with complaints in the case, saying they were “forced to act in pornographic movies,” adding that the accused took advantage of struggling models, actors and other workers.
A Mumbai court on July 20 sent businessman Kundra to police custody till July 23 and in another bail hearing his custody was later extended till July 27.
Mumbai Police told the Court that they suspect money earned from pornography was used for online betting. “He appears to be the key conspirator. We have sufficient evidence regarding this,” Mumbai Police Commissioner Hemant Nagrale had said.
The case was registered with Crime Branch Mumbai in February 2021 about the creation of pornographic films and the use of apps.
Also read: Raj Kundra moves Bombay HC, challenges ‘illegal arrest’ in pornography-related case