They also promised monthly returns and repayment of the principal amount, the official said.

As per the FIR, the complainant claimed that he transferred Rs 31.9 crore in April 2015 under a share subscription agreement, followed by another Rs 28.53 crore under a supplementary agreement in September 2015.

Despite providing a personal guarantee in April 2016, Shetty resigned as a director of the company in September that year.

Kothari later found that insolvency proceedings were on against the company in 2017 for defaulting on another agreement, the official said.

In his complaint, Kothari alleged that he provided a loan for business, but the money was allegedly diverted for personal use by the accused persons, according to him.

Accordingly, Kothari approached the Mumbai police with a complaint against the actor, her husband and other unknown persons, based on which a case was registered, he said.

A statement was then issued by Shetty and Kundra’s lawyer in connection with the case, which states that his clients deny all the allegations that are purely civil in nature and have been adjudicated by the National Company Law Tribunal (NCLT) Mumbai on October 4, 2024.

“This is an old transaction, wherein the company went into financial distress and eventually got entangled in a long legal battle at the NCLT,” the statement said.

There is no criminality involved and our auditors have submitted all the necessary supporting documents from time to time, as requested by the EOW, including detailed cash flow statements, it had added.