Rajasthan High Court refuses bail to Vikram Bhatt and wife in Udaipur fraud case
The Rajasthan High Court has turned down a bail petition filed by filmmaker Vikram Bhatt and his wife, Shwetambari Bhatt, in a fraud case registered in Udaipur. The couple, who remain in judicial custody, had asked the court to quash the FIR and grant interim release, but the bench declined to interfere and allowed the police investigation to go ahead.
What the court noted
Delivering the order on Monday, Justice Sameer Jain said the allegations go beyond a simple contractual dispute. In the court’s view, the case points to “deliberate diversion and misappropriation of funds.” The judge further observed that the matter involves dishonesty and an apparent lack of transparency rather than merely non-performance of a contract.
As the order states: “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.”
The allegations in brief
- The FIR was filed by Udaipur businessman Dr. Ajay Murdia, who claims he was defrauded of around Rs 30–40 crores meant for film production.
- The money, Dr. Murdia alleges, was paid under an agreement to make four films, including a planned biopic on his wife, but the projects never materialised.
- He further alleges that substantial sums were diverted to unrelated vendors and parties and that fake invoices were used to conceal transactions.
Bhatt camp’s defence
Vikram Bhatt’s legal team argued that the dispute is essentially civil, stemming from a commercial agreement to make films, and should therefore be handled in civil courts — specifically in Mumbai rather than Udaipur. They sought both quashing of the FIR and interim release from custody.
The Rajasthan High Court, however, found enough in the preliminary inquiry to treat the matter as involving possible criminality and permitted the investigation to continue.
Arrests and earlier hearings
The Bhatts were arrested in Mumbai in early December and later produced before a court in Udaipur. Their earlier plea for anticipatory bail had already been rejected by the Bombay High Court.
What happens next
With the Rajasthan High Court declining to stay the FIR or grant bail, the police probe will proceed through the usual phases: investigation, possible chargesheet, and then trial if the prosecution files charges. The court’s observations about alleged fake invoices and diversion of funds mean investigators are likely to examine financial records and transaction trails closely.
This case remains under active investigation, and any further legal moves — including fresh bail applications or challenges to the FIR — will depend on the progress of the police probe and evidence that comes to light.