In a significant development, the Enforcement Directorate (ED), a key financial investigation agency in India, has executed a provisional attachment order under the stringent Prevention of Money Laundering Act (PMLA). This order has led to the seizing of properties belonging to the prominent Bollywood couple Shilpa Shetty and Raj Kundra. The assets, which include a high-value bungalow, a flat, and equity shares, are collectively valued at an estimated Rs 98 crore.
This action is part of the ED’s ongoing investigation into a substantial Bitcoin scam, which is believed to have defrauded investors of roughly Rs 6,600 crore. According to reports, multiple First Information Reports (FIRs) have been registered by the Maharashtra Police and Delhi Police against Variable Tech Private Limited and its associates, including the now-deceased Amit Bhardwaj and his kin—Ajay, Vivek, Simpy, and Mahender Bhardwaj. Their agency has been accused of running a fraudulent scheme involving the collection of vast sums of money in the form of Bitcoins from unsuspecting members of the public, with false assurances of 10 percent monthly returns in the same cryptocurrency.
The Enforcement Directorate, in its probe, has alleged that the accused initially claimed that the collected Bitcoins would be used for mining operations, ostensibly to generate substantial crypto asset returns for the investors. However, contrary to their promises, the promoters reportedly swindled the participants and concealed the misappropriated funds in anonymous online wallets.
Raj Kundra has been implicated by the ED for his alleged receipt of 285 Bitcoins from Amit Bhardwaj, the central figure behind what has been described as the Gain Bitcoin Ponzi scheme. These funds, say the ED, originated from the ‘proceeds of crime’ garnered by Amit Bhardwaj from the scheme’s investors. The Bitcoins were purportedly for the purpose of establishing a Bitcoin mining operation in Ukraine—a venture that ultimately never materialized. Consequently, Kundra is accused of still holding onto the Bitcoins, now with a value in excess of Rs 150 crore.
The legal representatives for Shilpa Shetty and Raj Kundra have categorically stated that no conclusive evidence has been found against the couple and affirmed their readiness to cooperate fully with the investigative authorities. Their involvement has again highlighted the vulnerabilities and potential for misuse within the burgeoning cryptocurrency sector, which has become rife with such fraudulent schemes.
Shilpa Shetty, also known for her various wellness and business ventures, married the businessman Raj Kundra on November 22, 2009. The couple has two children: a son named Viaan, born in May 2012, and a daughter named Samisha, who arrived via surrogacy in February 2020.
The case stands with the provisional seizure of assets at this juncture. However, it represents a significant move by the ED in what is one of the largest cryptocurrency-related fraud cases in India. As the investigation moves forward and the judicial process unfolds, the eventual outcomes will likely have profound implications for the involved parties and may serve to shape the regulatory landscape for cryptocurrency dealings in the country.
The narrative of this couple’s involvement in an alleged financial scandal is undoubtedly causing ripples across the Indian entertainment and financial sectors. With the public’s eye closely following the developments, both the authorities and the accused are set under intense scrutiny. As the situation develops, the wider ramifications for trust in cryptocurrency investments and the possible need for stronger oversight mechanisms within the industry will be closely examined.
(With inputs from Agencies)
