In a significant legal development, the Rajasthan High Court has dealt a blow to Bollywood filmmaker Vikram Bhatt, his wife Shwetambari Bhatt, and other associates by refusing to dismiss a criminal case against them. The court has allowed the police to proceed with its investigation into allegations of misappropriating crores of rupees meant for film production.
Court Upholds FIR, Sees Criminal Intent
On Monday, a single-judge bench of Justice Sameer Jain dismissed a petition filed by Vikram Bhatt that sought to quash the First Information Report (FIR) registered against him. The court firmly held that the case does not appear to be a mere contractual dispute and, based on initial evidence, involves serious allegations of criminal misappropriation of funds.
The bench stated that no judicial interference was warranted at this preliminary stage, thereby green-lighting the ongoing police probe. The court emphasized that when a cognisable offence is prima facie established, the High Court should not obstruct an investigation.
The Allegations: Diversion of Rs 47 Crore
The FIR was lodged by Dr. Ajay Murdia, a well-known Udaipur-based doctor and the founder of Indira IVF. He has accused Bhatt and his associates of cheating and criminal breach of trust. The complaint centers on an agreement where Murdia invested funds for the production of four films.
According to the agreement, Murdia committed an initial investment of Rs 40 crore, followed by an additional Rs 7 crore. The complainant alleges that the funds collected specifically for film production were diverted and misused. A preliminary police inquiry reportedly uncovered evidence of fake invoices and the circulation of money to vendors and individuals unconnected to the film projects.
Bhatt's Defence and the Court's Firm Stand
Arguing for the quashing of the FIR, Vikram Bhatt's legal team contended that the dispute was purely civil in nature, stemming from an alleged breach of contract, and should not attract criminal liability. They also challenged the jurisdiction, stating that as per the agreement between the parties, any disputes should be resolved in Mumbai, not Udaipur.
Bhatt's counsel submitted that only one film was completed, and the remaining projects stalled after the complainant allegedly stopped further financing.
However, the court was not convinced by these arguments. In its order, the bench observed, "The allegations are not confined merely to non-performance of a contract; they involve deliberate diversion of funds, lack of transparency, and elements of dishonesty." This clear finding of alleged dishonest intent underpinned the decision to allow the investigation to proceed.
The accused, including Vikram and Shwetambari Bhatt, are currently lodged in Udaipur jail. This ruling marks a critical setback for them, as the legal process will now continue its course based on the criminal charges.
