In last year's Celebrity Big Brother, the 33-year-old actress was labelled 'Shilpa Poppadom' by Goody.
Goody, who also criticized eventual winner Shetty's cooking during the show, was branded a racist and Indians burnt effigies of her in the streets.
Now, mum-of-two Goody has decided to enter Indian BB house this weekend in a bid to clear her name. The 27-year-old will also pocket a 100,000-pound fee.
"When I found out Jade was going on Big Brother India I was as shocked as when I first met her. Why go through this again," The Sun quoted show host Shetty, as saying.
"But part of me was really happy because it is an opportunity to show how welcoming we are.
"She's going in as someone who has had misconceptions about our country. I hope Jade learns first hand about our culture and how wonderful our people are," she added.
Big Boss 2 - Synopsis episode 2
The episode begins with the welcome dinner that was provided by Bigg Boss. Then they start pairing up for example Sanjay Nirupam & Rakhi Tondon...Jade Goody & Payal Rohatgi.
It's time for contestants to inform Bigg Boss about 2 housemates that they would like to put up for nominations, however just before they could do that Bigg Boss announces that we would like to showcase our hospitality to our first ever international celebrity – Jade Goddy, hence the housemates cannot nominate Jade Goody and her partner this week.
The next day begins with breakfast worries and per nominations stress for week one...Raja Chaudhary and Sanjay Nirupam were announced as the two nominated for evictions by the housemates.
Further in the episode Jade Goody learns the bollywood style dancing from Sambhavna Seth as they perform to the hit number ' Mehooba Mehooba', Ehsan Quershi croons the song for them.
The Bigg Boss gives them a task for day 1 that is to be handcuffed with their partners. The Bigg Boss has instructed all the house mates to converse in Hindi the only exception being Payal and Jade Goody. Payal has been instructed to teach Jade Hindi. Where she teaches Jade how to say hr name in hindi.
Everyone comes up and takes upon themselves the various tasks, like cooking, cleaning, washing etc...Rahul says that I can't cook so I will take the task of keeping the toilets clean. He takes a broom and starts cleaning the bath room.
While all the house mates are sitting and talking, Jade comes running in the living room, saying there is some crisis in the bathroom and the water tap is broken. Rahul tries to fix the crisis.