Mumbai Police handed over the case registered against three producers of Viaan Industries — the company of Bollywood actor Shilpa Shetty's businessman husband Raj Kundra — and actor Gehana Vasisth to the property cell of the crime branch.
The case was registered at Malvani police station. The property cell had lodged a case in connection with the adult film racket in February this year, after it raided a bungalow at Madh Island near Mumbai and arrested five people engaged in shooting adult content.
Raj Kundra is currently in 14-day judicial custody following his arrest last week for his alleged involvement in the adult film racket.
On Wednesday, market regulator Securities and Exchange Board of India (SEBI) slapped a penalty of Rs 3 lakh on Shilpa Shetty, Raj Kundra and his firm on charges of flouting its insider trading rules.
Mumbai Police called Raj Kundra a "key conspirator" and charged him with cheating and for obscene and indecent advertisements and displays under various sections of the Indian Penal Code.
The police have also used sections of the Information Technology Act and Indecent Representation of Women (Prohibition) Act against Kundra. He was arrested on July 19 along with 10 others for their alleged role in the production of pornographic content through an app called Hotshots.
Mumbai Police stated in their remand application that Raj Kundra earned over Rs 1.17 crore from subcribers of Hotshots app on Apple's App Store between August and December 2020. Hotshots mobile app was developed for streaming adult and pornographic content that Kundra's firm produced.
The Bombay high court is scheduled to hear Raj Kundra's bail petition later today.