Raj Kundra got arrested by the Mumbai Crime Branch in the connection to the production and distribution of adult films case. Kundra has been sent to 14 days under judicial custody. On July 23, the Mumbai police had raided Kundra's residence at Juhu, Mumbai.
According to NDTV's report , When Raj arrived at their home with the crime branch for an investigation, Shetty shouted at him. Shilpa also questioned Raj as to what was the need to do all this when they have everything. This report also states that Shetty broke down in front of Kundra and said that the family's reputation was ruined because of his deeds. Not only that Shetty's all their endorsements which was there in the industry were cancelled off.
Shilpa had to give up her upcoming projects because of this controversy.
Shilpa's statements was also conducted by the Mumbai police. The actor has also states that and tries to differentiate or classifies erotica and porn which was alleged to Raj. Meanwhile, Raj's lawyer has also commented that it would be wrong to differentiate the content of the pornography. He also stated the section which objected to the application of section under 67A of the Information Technology Act. Which says these laws consider "actual intercourse" as vulgar content and that it cannot be classified as porn.