Kulshreshta had allegedly been working with Amit Malhotra, a man known for smuggling currency from drug dealers in New Delhi.
They had met while she was working onboard a flight to India at some point last year. Malhotra offered to pay Kulshreshta to smuggle drug dealers' cash out of New Delhi to India - where it would be used to buy gold that would be sent back to the dealers.
"The money was being used for purchasing gold abroad. The gold would then be sent to India illegally," an official said.
The 25-year-old was busted by a member of the Directorate of Revenue Intelligence. Kulshreshta had hidden 32 bundles of foil-wrapped notes in her check-in luggage and a further 16 in her hand luggage, NDTV reported.
"She had already boarded the plane," an official said. "Passengers were about to board. After we received [the] information, we first stopped boarding and then checked her hand baggage and recovered [the] cash."
Check out the moment she was busted with $500,000 in the video below:
Having met Malhotra last year, this was not the first time that Kulshreshta had used her job to smuggle large amounts of cash. However, Kulshreshta, pictured below after she was caught, is not the only Jet Airways' staff who is suspected of being involved in smuggling.
As a result, the security personnel who allowed her to take her luggage onto the plane are now under investigation.
"We need to figure if this was a case of a lapse or collusion," an official said.
It is not yet known what repercussions Kulshreshta will face for her actions, however, if what happened to a British woman who tried to smuggle liquid cocaine into Australia in a lava lamp is anything to go by, they will be severe.