The Enforcement Directorate (ED) has taken action against Raj Kundra, businessman and actor Shilpa Shetty’s husband, in connection with a Bitcoin investment fraud case. The ED has provisionally attached immovable and movable properties worth Rs 97.79 crore under the Prevention of Money Laundering Act (PMLA). The attached properties include a residential flat in Mumbai’s Juhu area, a residential bungalow in Pune, and equity shares in Kundra’s name.
The ED’s action is part of the ongoing investigation into a money laundering case filed against Kundra based on multiple FIRs registered by the Maharashtra Police and Delhi Police. The FIRs allege that Kundra and others collected funds in the form of Bitcoins from people with false promises of high returns. The accused had collected huge amounts of funds in the form of Bitcoins (worth Rs 6,600 crore in 2017) from people with false promises of a 10 per cent per month return in the form of Bitcoins. The collected Bitcoins were supposed to be used for Bitcoin mining, but the promoters cheated investors and concealed the ill-gotten Bitcoins in obscure online wallets.
During the investigation, the ED found that Kundra received 285 Bitcoins from the mastermind of the Gain Bitcoin Ponzi Scam, Amit Bhardwaj, for setting up a Bitcoin mining farm in Ukraine. Since the deal didn’t materialize, Kundra is still in possession of the Bitcoins, which are currently valued at more than Rs 150 crore.
Kundra’s lawyer, Prashant Patil, stated that they will follow the due process of law and take necessary steps to protect their clients’ liberty and property. He also expressed confidence in the judiciary and hoped for a fair investigation.
Earlier, several search operations were conducted in this case, leading to the arrest of Simpy Bhardwaj, Nitin Gaur, and Nikhil Mahajan. They are currently in judicial custody, while the main accused, Ajay Bhardwaj and Mahendra Bhardwaj, are still wanted by law enforcement agencies.
This is the second attachment of properties in the case. Previously, the ED had attached properties worth Rs 69 crore. The ED has already filed chargesheets against the arrested accused.
It is worth noting that Kundra had spent two months in Mumbai’s Arthur Road jail in 2021 in connection with a pornography case. He was granted bail in September 2021 by a metropolitan magistrate’s court in Mumbai.