Advocate Prashant Patil stated on Thursday that no raid occurred. "There is no Income Tax 'raid' of whatsoever nature against my client," he said, warning of legal action against those linking the visit to the Economic Offences Wing (EOW) case.
The clarification follows media reports of tax officials visiting Shetty's Juhu home amid scrutiny of her restaurant chain Bastian, including alleged irregularities in Bengaluru.
Separately, Mumbai Police's EOW this week added cheating charges under Section 420 IPC to the couple's existing criminal breach of trust case.
The allegations stem from a complaint by businessman Deepak Kothari, who claims he was duped of over ₹60 crore between 2015 and 2016 in a loan-cum-investment deal for their defunct home-shopping venture, Best Deal TV Pvt Ltd, where Shetty and Kundra were directors.
Kothari alleges the funds, initially framed as a loan but restructured as investment to avoid tax issues, were never repaid and partly diverted personally.
Both have been questioned—Kundra for five hours in September, Shetty for over four in October. A Look Out Circular restricts their foreign travel unless they deposit ₹60 crore or furnish a bank guarantee, as directed by the Bombay High Court.
Raj Kundra dismissed the claims as "baseless and motivated" on X, noting a quashing petition pending in the High Court. "We have fully cooperated and have complete faith in the judiciary," he added. Shetty reposted the statement.
The case, registered in August under older IPC sections as the incidents predate the new criminal code, continues with EOW gathering evidence on fund trails.
Meanwhile, Bengaluru police recently booked Bastian Garden City—co-owned by Shetty—for operating beyond permitted hours after a late-night incident.
As probes intensify across financial and hospitality ventures, the couple maintains the disputes are civil, not criminal. The High Court hearing could prove pivotal.
