Table of Contents
Mumbai: The Enforcement Directorate (ED) on Friday knocked Raj Kundra’s door again to conduct searches in a money-laundering case related to ‘adult film’ production. As many as 15 locations were searched as part of a case initiated by the Mumbai police against Kundra in 2021 in connection with the alleged porn production.
Raj Kundra, who was previously arrested by the Mumbai Crime Branch in July 2021, under various sections of the Indian Penal Code and the Information Technology Act, later secured bail from a city court.
Kundra has been under the ED's lens for months, following allegations that he was a key player in a scheme that monetised explicit content streamed via the now-defunct 'Hotshots' application. The app, previously available on platforms like Apple and Google Play, was removed after public and legal scrutiny.
Raj Kundra In Trouble Again?
Businessman and Bollywood actor Shilpa Shetty’s husband, Raj Kundra, has once again come under the radar of the Enforcement Directorate (ED) in connection with the alleged 'Adult Movie' money laundering case. The investigation, which had momentarily cooled off, has gained momentum after new evidence emerged, prompting the agency to intensify its scrutiny of Kundra’s financial dealings.
Apart from Kundra and officials of the Raj Kundra Films, actors Poonam Pandey, Sherlyn Chopra and Umesh Kamat were also named accused in the case.
The ED has secured Shilpa Shetty's Juhu property, asserting that Kundra utilised illicit funds to acquire the flat before transferring ownership to his wife in the Bitcoin case.
The Allegations: Explicit Content and Digital Profits
The case dates back to 2021 when Kundra’s business ventures were accused of producing explicit adult content and distributing it through mobile apps and digital platforms. Authorities allege that these operations violated obscenity laws and generated significant revenue. The ED suspects that the proceeds from these activities may have been laundered through offshore accounts and shell companies to evade Indian financial regulations.
ED claims that Kundra utilized his company, Armsprime Media Pvt Ltd, to develop and manage the operations of a controversial app alleged to have hosted adult content. According to investigators, Armsprime was later sold to UK-based Kenrin Pvt Ltd, which purportedly took over the app's operations, facilitating the uploading and streaming of explicit material. The ED suspects that this transition was part of a strategy to obscure the origins of the revenue generated from the app.
Additionally, the ED alleges that proceeds from these operations were laundered through a network of offshore accounts and shell companies. Investigators believe that Kundra played a pivotal role in structuring these financial transactions to evade regulatory oversight. By transferring ownership to Kenrin Pvt Ltd, the business allegedly continued operating from overseas, complicating efforts to trace the financial flow. These claims form the crux of the ED's case, raising serious questions about the legality of the operations and Kundra’s role in monetizing content deemed inappropriate under Indian law.
The app is alleged to have attracted aspiring actors under the guise of auditions for web series. However, reports suggest that these actors were later pressured into filming semi-nude or nude scenes without their consent. According to police investigations, Raj Kundra's phone contained WhatsApp chats that reportedly revealed financial transactions connected to Kenrin Pvt Ltd. These chats also included discussions about selling a collection of 119 adult films for USD 1.2 million, providing a critical link in the case.
Kundra’s Defense: Bold Content, Not Pornography
Raj Kundra has consistently denied all allegations, asserting that his ventures focused on producing "bold content" within the boundaries of the law. In 2021, Kundra was arrested under the Information Technology Act and obscenity laws but was released on bail after two months. He maintains that his businesses operated transparently and were unfairly targeted.
During the bail plea hearing, Kundra's counsel argued that neither he nor his IT head, Ryan Thorpe–who was also arrested–was responsible for deciding what content was uploaded to the platform. However, the Mumbai Police maintained that they have enough evidence against Kundra.
He had filed a discharge application, asserting that the evidence gathered during the investigation failed to establish even a primary case against him, citing a "lack of proof of essential ingredients".
Even after his release, Kundra has remained a subject of public fascination. His decision to wear face masks resembling superhero characters during public appearances is seen as a statement against his prolonged legal troubles. However, his theatrical gestures haven’t distracted investigators, who seem determined to connect the dots in this complex case.
Not The Only Case Against Raj
ED is also delving into Raj Kundra’s alleged connection with a cryptocurrency Ponzi scheme led by Amit Bhardwaj, the mastermind of the infamous Gain Bitcoin scam. Bhardwaj’s scheme, which duped thousands of investors by promising exorbitant returns, has been under investigation for years, and Kundra’s name has surfaced in relation to the laundering of funds linked to the operation.
Earlier this year, the ED attached assets worth ₹98 crore belonging to Raj Kundra and his wife, Bollywood actor Shilpa Shetty, claiming that these were acquired using proceeds from illicit activities, including the Gain Bitcoin scam. The agency is investigating whether Kundra had a direct role in facilitating or profiting from the scheme, which allegedly defrauded investors of substantial amounts by leveraging cryptocurrency’s growing appeal. This probe adds another layer of complexity to the ongoing legal troubles surrounding Kundra.