Vikram Bhatt fraud case: Rajasthan High Court rejects filmmaker's bail plea, police investigation to continue

Vikram Bhatt and wife Shwetambari are in judicial custody after allegations of a ₹30 crore fraud by a Rajasthan-based businessman.

Filmmaker Vikram Bhatt and his wife, Shwetambari, were arrested in December in a fraud case and sent to judicial custody. The court had denied their request for bail on medical grounds, sending them back to judicial custody. The filmmaker has suffered another setback now. According to the latest report by PTI, the Rajasthan High Court on Monday rejected the bail plea of Vikram and others, seeking the quashing of a cheating FIR lodged against them.

Filmmaker Vikram Bhatt being taken to Udaipur ACJM-4 court last month. (HT_PRINT)

Update on Vikram Bhatt case

The latest update states that Justice Sameer Jain, while refusing to interfere, observed that the matter does not appear to be ‘merely a breach of contract’ but prima facie involves deliberate diversion and misappropriation of funds. The police investigation will continue on this case.

Vikram had moved the High Court to seek the quashing of the FIR. He contended that the matter was of a civil nature, not criminal.

In its order, the High Court said, “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.”

What is the fraud case?

The case against Vikram, his wife, and six others has been filed by businessman Dr Ajay Murdia. In his complaint to the Udaipur Police. Dr Murdia alleged that he first met Dinesh Kataria at an event, where Kataria proposed making a biopic on his wife. On April 24 in 2024, Kataria introduced him to Vikram Bhatt in Mumbai. This followed discussions about the biopic.

The FIR says that Vikram and his wife allegedly promised that if Murdia financed an initial amount of ₹7 crore and provided further funding, they could produce four films for ₹47 crore, assuring him that these projects would yield profits of ₹100-200 crore.

Vikram and his wife were arrested in Mumbai on December 7 and taken to Udaipur by the police, where they were produced before the court the next day. On December 9, they were remanded to seven days’ police custody.