The financial aspects of Raj Kundra business will be probed as Enforcement Directorate may file a case against him under the Prevention of Money Laundering Act (PMLA) and Foreign Exchange Management Act (FEMA). According to ANI, the case would be filed on the basis of financial irregularities around the alleged porn racket.
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Mumbai police arrested actor Shilpa Shetty’s husband and businessman Raj Kundra on July 20, in connection with production of pornographic films. The company owned by Kundra’s brother-in-law reportedly used to manage an online streaming programme. In association with a London-based firm, and a mobile app named Hotshot they allegedly generated porn videos. Later, Raj Kundra was held in police custody until July 23 which has now extended to July 27.
What's the Charge?
The Police is investigating the case and the ED may take action to probe the financial aspect as well. According to Hindustan Times, the charges against Kundra are of filming pornographic films and deceiving people with assurance of roles in Hindi films. Additionally, the police received complaints from women actors saying that they were promised Bollywood roles and forced to be part of those porn movies.
Adult Film Business?
As per reports, Raj Kundra was aiming to sell 119 adult films to a foreign individuals for a sum of $1.2 million. Police suspect that the money earned through the mobile app could have been channelised into online betting. A South Africa-based sports betting firm transferred money into Kundra's bank account.
The Enforcement Directorate can launch a separate investigation to probe the financial aspects. ED may invoke charges under FEMA as most of Kundra’s transactions were with foreign firms.
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What are FEMA and PMLA applicable in Raj Kundra case?
FEMA or Foreign Exchange Management Act is a law in place by the Indian government in 1999 to encourage external payments and cross-border trades in the country. All people engaging in overseas trade must follow the rules under this.
As the name suggests, the Prevention of Money Laundering Act is to prevent money laundering. Under this act, the authority can confiscate property obtained for the laundered money.
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