Vikram Bhatt Fraud Case: Rajasthan HC Rejects Bail, Says FIR Shows ‘Dishonesty’

Filmmaker Vikram Bhatt has suffered another legal setback in the ongoing fraud case against him and his wife, Shwetambari. The Rajasthan High Court on Monday rejected Bhatt’s bail plea, refusing to quash

the cheating FIR lodged against the couple and others. With this decision, the police investigation in the case will continue.

According to a report by PTI, Justice Sameer Jain declined to interfere in the matter, observing that the allegations cannot be treated as a simple contractual dispute. The court noted that the case prima facie points toward deliberate diversion and misappropriation of funds, warranting further criminal investigation.

Bhatt and his wife were arrested in December last year and sent to judicial custody. Earlier, a lower court had also rejected their bail application on medical grounds, directing that they remain in custody. The High Court’s latest order further weakens the filmmaker’s legal position.

High Court observations on the allegations

Vikram Bhatt had approached the Rajasthan High Court seeking quashing of the FIR, arguing that the dispute was civil in nature and related to non-performance of contractual obligations rather than a criminal offence. However, the court did not agree with this contention.

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

Justice Jain further observed that the matter does not appear to be “merely a breach of contract” and that the material on record indicates intentional acts that go beyond civil liability. As a result, the court allowed the police investigation to proceed without interference.

Details of the alleged fraud case

The fraud case against Vikram Bhatt, his wife Shwetambari, and six others was filed by businessman Dr Ajay Murdia. In his complaint to the Udaipur Police, Dr Murdia alleged that he first met one of the accused, Dinesh Kataria, at an event where Kataria proposed making a biopic on Murdia’s wife.

According to the FIR, Kataria later introduced Dr Murdia to Vikram Bhatt in Mumbai on April 24, 2024, following which discussions were held regarding the proposed biopic. The complaint claims that Bhatt and his wife promised that if Dr Murdia financed an initial amount of ₹7 crore and provided additional funding, they would produce four films for a total budget of ₹47 crore.

The FIR further alleges that Dr Murdia was assured the projects would generate profits in the range of ₹100-200 crore. However, he later claimed that the funds were misappropriated and diverted, leading him to approach the police.

Vikram Bhatt and Shwetambari were arrested in Mumbai on December 7 and taken to Udaipur, where they were produced before a court the following day. On December 9, both were remanded to seven days of police custody. The case remains under investigation.