The Enforcement Directorate may file a case against Raj Kundra under the Prevention of Money Laundering Act and the Foreign Exchange Management Act as the case involving him and an alleged porn racket also concerns financial irregularities, ANI has reported.
On July 20, Mumbai police arrested Bollywood actress Shilpa Shetty’s husband, billionaire Raj Kundra, in connection with an alleged porn racket. Raj Kundra’s company, which is owned by Kundra’s brother-in-law, used to manage an online streaming programme that allegedly generated porn videos in collaboration with a London-based firm. Kundra was arrested and held in police custody until July 23, a date that has now been extended to July 27.
Several parts of the case are emerging as Mumbai Police investigates it. According to police, Kundra and his collaborators are accused of manufacturing pornographic films and defrauding individuals with promises of Bollywood roles. Women actors have filed complaints with the police alleging that they were promised Bollywood roles and were coerced to appear in pornographic films.
Financial elements are also being investigated, with the Enforcement Directorate having the authority to initiate a separate investigation. Because the majority of Kundra’s transactions were with foreign companies, the ED may file FEMA charges against him.
What is the difference between FEMA and PMLA?
The Foreign Exchange Management Act governs international trade, payments, and other matters. Foreign exchange related offences are classified as civil offences under this Act.
The purpose of the Prevention of Money Laundering Act, as the name implies, is to prevent money laundering. The government can seize property earned through money laundering under this act.
What allegations have been brought against Raj Kundra for financial irregularities?
Raj Kundra was preparing to sell 119 erotic videos to a foreign distributor for $1.2 million, according to Mumbai Police. Police believe the money obtained through the Hotshots app was used to fund online betting when a South African sports betting firm transferred funds to Kundra’s bank account.