Film financer Bharat Shah was on Thursday arrested on charges of fraud and denied bail by a local court in Mumbai.
Shah, a diamond trader, was arrested this morning by the Malabar Hill police which was executing a warrant issued against him by a Silvassa court in connection with a case of fraud and misappropriation of assets.
The case had been lodged in the year 2000 against a Silvassa-based company Vishal Chairs of which Shah was a director.
Shah's advocate IA Bagaria argued before the Girgaum metropolitan magistrate that Shah had resigned from his post when the case had been filed against the company.
The magistrate, however, rejected the bail application and said Shah could approach the Sessions Court for bail.
Shah was in 2003 sentenced to one year in prison on charges of assisting extortion activities of the underworld. He had already 14 months in jail during the trial.