The Rajasthan High Court has refused to grant bail to filmmaker Vikram Bhatt and his wife Shwetambari Bhatt in a Udaipur-registered fraud case, keeping the couple in judicial custody while the police investigation continues. The couple had sought the quashing of the FIR and interim release, but the court declined to interfere, allowing standard probe procedures to move forward.
What the court said
Delivering the order on Monday, the bench — headed by Justice Sameer Jain — said the allegations go beyond a simple contractual dispute. The court noted there were prima facie signs of “deliberate diversion and misappropriation of funds,” and pointed to issues such as lack of transparency and dishonesty.
“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 preliminary inquiry has revealed evidence of fake invoices and the circulation of funds.”
Allegations in the FIR
The FIR was lodged by Udaipur businessman Dr. Ajay Murdia, who claims he was defrauded of roughly Rs 30–40 crore. According to the complaint, the money was meant to finance four films, including a planned biopic on Dr. Murdia’s wife, but the projects never took off. Dr. Murdia alleges substantial sums were transferred instead to unrelated vendors and parties, and that fake invoices were used in the transactions.
Bhatt camp says it’s a civil matter
Vikram Bhatt’s lawyers argued the dispute is essentially civil — arising from a film production agreement — and should not attract criminal proceedings. They also contended that Mumbai would be the proper forum for such contractual issues, not Udaipur. Despite these submissions, the Rajasthan High Court chose not to quash the FIR or grant interim bail.
Arrest and prior bail attempts
The Bhatts were arrested in Mumbai in early December and later produced before a Udaipur court. Their earlier plea for anticipatory bail had already been rejected by the Bombay High Court. With the Rajasthan High Court declining interference now, the couple remains in judicial custody as the investigation proceeds.
What happens next
- Police will continue their probe, examine financial records and invoices, and question co-accused parties as required.
- If investigators find further evidence of criminality, charges could be framed and the matter go to trial.
- The Bhatts can pursue regular bail applications as the case develops, and their legal team may continue to challenge jurisdictional and civil-versus-criminal contentions in higher courts.
Industry context
The case has attracted attention because of Vikram Bhatt’s long career in Hindi cinema as a director and producer. Beyond the legal wrangling, the allegations — involving large film advances and a shelved biopic — serve as a reminder of the financial complexities and risks in film financing.
The court’s order noted preliminary evidence suggesting irregular movement of funds and fake documentation, which shifted the matter from a simple contractual dispute toward potential criminal culpability. With the Rajasthan High Court refusing relief, the focus now turns to the ongoing investigation and how the evidence unfolds in the coming weeks.
