In a significant legal setback, prominent filmmaker Vikram Bhatt and his wife, Shwetambari Bhatt, have been denied bail by the Rajasthan High Court. The court rejected their plea for temporary release in connection with a multi-crore fraud complaint filed in Udaipur, allowing police investigations to proceed unhindered.
Court Cites "Deliberate Diversion of Funds"
The single-judge bench of Justice Sameer Jain delivered the order on Monday, declining to grant pre-arrest bail. The court's observations went to the heart of the allegations, distinguishing them from a simple civil dispute. The order stated that the accusations extend beyond mere non-performance of a contract.
"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," the court noted. It further highlighted that a preliminary inquiry had unearthed evidence of fake invoices and the circulation of funds, suggesting misappropriation.
The Core of the Allegations
The First Information Report (FIR) was lodged by Udaipur-based businessman Dr. Ajay Murdia. He alleges that he invested a substantial sum, estimated between Rs 30 to 40 crores, for the production of four films. One of these projects was reportedly a biopic based on his wife.
According to the complaint, despite the payments being made, the film projects never materialized. The crux of the fraud allegation is that large portions of the funds were allegedly diverted to unrelated vendors and third parties, rather than being used for the intended cinematic productions.
Defense Arguments and Legal Journey
Representing the Bhatts, their legal counsel argued that the dispute is purely civil and contractual in nature. They contended it stemmed from a deal to produce four films and, therefore, should not attract criminal charges. The defense also raised a jurisdictional question, asserting that Mumbai, not Udaipur, was the appropriate venue for resolving such contract-related disagreements.
This bail rejection follows a series of legal challenges for the couple. In early December last year, they were apprehended by Mumbai police and subsequently presented before a court in Udaipur. Prior to this, their plea for anticipatory bail had also been turned down by the Bombay High Court.
With the Rajasthan High Court's latest decision, the path for the police to continue a standard investigation into the serious claims is now clear. The court has currently refrained from quashing the FIR or granting any relief from arrest, leaving the Bhatts in judicial custody as the probe advances.
Disclaimer: The details presented are based on court proceedings and allegations contained in an FIR. These are claims made by the involved parties and have not been proven in a court of law. The case is sub-judice, and a final verdict is yet to be delivered.
