Mumbai: The Enforcement Directorate (ED) on Friday conducted searches at 15 locations, including the Juhu residence of businessman Raj Kundra, husband of Bollywood actress Shilpa Shetty, as part of a money laundering case linked to alleged distribution of pornographic and adult movies. The searches, spanning multiple locations in Mumbai and Uttar Pradesh, also targeted his office and associates’ premises.
During the search, Kundra was present and was questioned by ED officials. The agency is likely to summon him for further investigation.
Details regarding the targets and findings of the operation are awaited.
Advocate Prashant Patil, the legal counsellor of Shetty, said that there has been no ED raid on his client. She has no connection with any offence of any nature. The ongoing investigation pertains solely to Raj Kundra, he added.
According to sources, the searches were focused on financial ties between Kundra’s company and UK-based Kenrin Limited, allegedly owned by Pradeep Bakshi, Kundra’s brother-in-law and promoter of the Hotshots app. The agency found numerous transactions between Kenrin and shell companies in India allegedly linked to Kundra.
In May 2022, the ED initiated a money laundering investigation against Kundra in connection with the case. The PMLA case was registered following an FIR filed by the Mumbai police in 2021, accusing Kundra of allegedly operating a pornography racket.
The pornographic content produced was being distributed over subscription-based mobile apps like HotHit Movies and Hotshots.
The Hotshots app was developed by Arms Prime Media Private Limited, a firm founded by Kundra in 2019. Kundra eventually sold the app to the US-based Kenrin for $25,000. However, Kundra's company, Viaan Industries, continued its collaboration with Kenrin to manage the app. The ED has identified bank transactions linked to Viaan Industries and other associated entities.
The alleged racket came to light in February 2021 when Mumbai police conducted a raid at a bungalow in Madh Island, where pornographic films were allegedly being produced. Subsequent investigations revealed Kundra as a key conspirator.
Kundra has denied all allegations, claiming he was framed as part of a personal vendetta orchestrated by a businessman in collusion with certain police officers.
In 2021, the Mumbai Crime Branch had filed a charge sheet and a supplementary charge sheet against Kundra in connection with the case, in which he spent two months in Mumbai’s Arthur Road jail.
Apart from the pornography case, the ED is also investigating Kundra’s involvement in a bitcoin money laundering case. In April 2024, the agency attached properties worth Rs 97.79 crore under the Prevention of Money Laundering Act (PMLA). The case originated from multiple FIRs registered by Maharashtra and Delhi Police against late Amit Bhardwaj, and others in a Rs 6,600 crore scam case.
