The ED has initiated an anti-money-laundering inquiry into an alleged pornographic film case in which businessman the Mumbai Police crime branch detained Raj Kundra and others in 2021, authorities said on Thursday.
After examining at least two police first information reports (FIRs) and subsequent charge sheets before a court, the federal agency has filed a complaint under the criminal provisions of the Prevention of Money Laundering Act (PMLA).
READ MORE: Raj Kundra charged with money laundering over porn films: report
Mr. Kundra, the husband of Bollywood actress Shilpa Shetty, and his partner Ryan Thorpe were detained and eventually released on bail. A few more were also detained.
According to authorities, the Enforcement Directorate (ED) would investigate the trail of finances and suspected profits of crime created by the accused and others in the case relating to the development and selling of these films.
Mr. Kundra, 46, was detained last year by the Mumbai police crime branch after being charged with violating numerous provisions of the Indian Penal Code, the Information Technology Act, and the Indecent Representation of Women (Prohibition) Act.
Last year, the businessman told a Mumbai court that the prosecution had shown no proof linking the app ‘Hotshots,’ which was used in the alleged pornographic video scam, to a criminal offense.
According to the investigation agency, the accused allegedly used the ‘Hotshots app to post and broadcast obscene material. Mr. Kundra stated there was no proof he was “actively” engaged in developing allegedly inappropriate pornographic material.
He claimed he was wrongfully accused, was not listed in the FIR, and was brought into the case by the respondent (police).
In his plea, the businessman stated that he is being used as a “scapegoat” for purposes that are only known to investigators.
Based on allegations from two ladies, the police had filed FIRs.
During the inquiry, authorities discovered that several small-time artists were enticed by promising them roles in web series or short novels.
According to the official, these performers were contacted for tryouts and requested to do ‘bold’ sequences, which eventually turned out to be semi-nude or nude acts, which were against their will.
During the police inquiry, it was discovered that there were several porn-like apps (applications) running on the internet. According to the authorities, Mr. Kundra reportedly established Armsprime Media Pvt Ltd, which acquired the Hot Shots app via London-based Kenrin Pvt Ltd to publish “objectionable footage” on social media.
Mr. Kundra’s phone was packed with WhatsApp conversations on Kenrin and its financial dealings. According to investigators, he reportedly proposed selling 119 explicit videos to a person for USD 1.2 million during these talks.
