The Rajasthan High Court has denied the bail petition filed by filmmaker Vikram Bhatt and his wife, Shwetambari Bhatt, in connection with a significant fraud case registered in Udaipur. The couple, currently in judicial custody, sought relief including the quashing of the FIR and interim release, but their plea was rejected, allowing the police investigation to continue.
Allegations of Fund Misappropriation
As per court reports, the allegations against the Bhatts and co-accused go beyond a simple contractual dispute, pointing towards a "deliberate diversion and misappropriation of funds." Justice Sameer Jain observed that the case involves clear elements of dishonesty and a lack of transparency, rather than just a breach of contract.
* The primary accusation stems from an FIR lodged by Udaipur-based businessman Dr. Ajay Murdia. * He alleges being defrauded of approximately Rs 30-40 crores, intended for various film productions, including a planned biopic. * Murdia claims that despite funds being paid as per agreement, the projects never materialized, with substantial amounts reportedly transferred to unrelated vendors and parties. * A preliminary inquiry has uncovered evidence suggesting the use of fake invoices and the circulation of funds without proper accountability.
Court's Observations and Legal Arguments
Justice Jain highlighted that the nature of the allegations indicates more than non-performance of a contract. The court found sufficient grounds to believe that there was a deliberate diversion of funds and a clear absence of transparency, raising serious questions of honesty.
Bhatt’s legal team had argued that the dispute was essentially civil, arising from an agreement to make four films, and thus should not attract criminal proceedings. They also contended that Mumbai, not Udaipur, was the appropriate venue for resolving such contractual issues.
Current Status of the Investigation
Vikram Bhatt and his wife were arrested in Mumbai in early December and subsequently produced before a court in Udaipur. Their earlier request for anticipatory bail was also rejected by the Bombay High Court. With the Rajasthan High Court declining to interfere with the FIR and bail applications, the police probe into these serious allegations will now proceed as per standard legal procedures, scrutinizing the financial transactions and alleged fraudulent activities in depth.
