In December 2021, the Vadodara Prevention of Crime Branch (PCB) arrested Kotwani for his alleged involvement in a racket manufacturing liquor under the guise of an ayurvedic syrup
After his arrest, Shah said, it was Nirupam – one of the top lawyers in Gujarat and Divyakant's son – who helped defend him in the two encounter cases, including the alleged fake encounter of Tulsiram Prajapati.