The 31-year-old beauty's parents Surendra and Sunanda Shetty have been charged with extortion; there have been stories of exploiting factory workers and money-grabbing actions; a heartbroken wife has accused Shilpa for the disintegration of her marriage; and a manager who claims he was dumped the moment she won Big Brother has called in a legal representative.
Shilpa has denied theses allegation and has insisted that she has been farmed.
"I've been framed. Do you think I am capable of doing what I am accused of," Daily Mail quoted her, as saying.
A conversation taped has revealed that her parents' hired gangsters to extort money from the businessman.
A few days after this conversation, Shilpa's parents were arrested on charges of extortion. The case is due again sometime this year, and if found guilty the couple could face imprisonment up to seven years.
It is not only the case of extortion, but also stories of the Shettys exploiting workers in their factory Esco, which makes caps for aluminum bottles in the suburb of Mumbai, that are enmeshing the actress's family.
However Surendra Shetty insisted that he treated the workers ‘like his own children'.
But, a report filed at the Judicial Magistrate's Court says that investigators from the Labour Commissioner's office found that women workers are being paid just 86 rupees - £1 a day - for an eight-hour shift, when the minimum wages is 110 rupees.
A police source has also said that next to the swimming pool at the home of an Indian tycoon is an actual size statue of a bare Shilpa. But it is uncertain if she posed for this work of art.
One of the few scandals involving the actress is her relationship with Bollywood director Anubhav Sinha., and it is said that they became "close" on the set of his thriller Dus in Canada in 2005.
Later Sinha left his wife Ratna; to whom he was married for 12 years.
But Shilpa's father vehemently denies the gossip saying that he knows his daughter very well.
"It's bull****. I know my own daughter," he said.
Meanwhile Bobby Khan, a Bollywood filmmaker and promoter who has known Shilpa for 12 years, insists that he was instrumental in getting her the Big Brother contract.
"Endemol [the producers] came to me last year. I convinced them to choose Shilpa, even though they wanted a bigger Bollywood star," Khan said.
"I came with her to Britain. The night before she went into the house, we talked about all the work we would do together after she came out and how this would be good for both of us," Khan added.
Instead, Khan on his arrival in Bombay received a bill of £15,000 for his trip and Shilpa did not even call him to thank him.
Khan has now decided to bring in a legal representative for this case.