A special court in Mumbai has determined that there exists prima facie material to proceed against businessman and film producer Raj Kundra on charges of money-laundering. This development is connected to a high-profile Bitcoin Ponzi scheme investigation spearheaded by the Enforcement Directorate (ED).
The Court's Order and Allegations
The detailed order, made available on Wednesday, January 7, 2026, follows a hearing on Monday. Special Judge R B Rote took cognisance of a supplementary chargesheet filed by the ED against Kundra and co-accused Rajesh Satija. The court has issued notices to both, directing them to appear before it on January 19, 2026.
Central to the case is the ED's allegation that Kundra received proceeds of crime in the form of 285 Bitcoins. The agency values this cryptocurrency haul at more than Rs 150 crore. The ED contends that Kundra continued to possess these funds, which are linked to the fraudulent activities of the main accused, Amit Bhardwaj.
Layering Through Property Transactions
The prosecution agency presented a detailed narrative of how the illicit funds were allegedly layered. A significant claim involves a property transaction between Raj Kundra and his wife, actor Shilpa Shetty.
According to the ED's supplementary chargesheet filed in September, Kundra and Shetty entered into a 'sale transaction' for five flats in Mumbai's upscale Juhu area. Crucially, the agency alleges this sale occurred without any actual change in ownership and at a rate far below the prevailing market price. The ED asserts this was a deliberate move to disguise the illegal origin of the funds.
"He has not only acquired/received the proceeds of crime... but in order to layer the transactions, so as to give colour of genuine transaction, he has done sale transaction with his wife at a rate which is far below market rate," the ED told the court. The agency further stated that Shetty paid Kundra Rs 38 crore for the flats, of which Rs 24.9 crore was transferred into a joint account held by the couple.
Connections to the Gain Bitcoin Ponzi Scheme
The money-laundering case stems from a larger fraud related to Amit Bhardwaj, the promoter of gainbitcoin.com. Bhardwaj is accused of running a Ponzi scheme where he promised investors high returns on cryptocurrency mining investments but ultimately duped them.
The ED's investigation has drawn links between Bhardwaj and Raj Kundra. The agency alleges that Kundra received the 285 Bitcoins from Bhardwaj. In this chargesheet, the ED also claims that co-accused Rajesh Satija received Rs 55 crore from Amit Bhardwaj.
It is important to note that Raj Kundra has consistently denied all allegations made against him in this matter. The court's order to issue process signifies a formal legal proceeding will now advance based on the prima facie evidence presented.
