Cheating case: Court refuses to quash FIR against Vikram Bhatt
What's the story
The Rajasthan High Court has denied filmmaker Vikram Bhatt's plea to quash the FIR filed against him and his associates in Udaipur. The court on Monday observed that the allegations involved "deliberate diversion and misappropriation of funds" rather than a simple contractual dispute, per PTI. Justice Sameer Jain refused to interfere with the matter, stating that there is prima facie criminal intent in the case.
Legal proceedings
Court noted serious financial irregularities in Bhatt's case
The court noted that the police investigation must continue as it involves serious financial irregularities. The FIR was lodged by Udaipur resident Dr. Ajay Murdia, who accused Bhatt, his wife Shwetambari Bhatt, and others of cheating and criminal breach of trust. The complaint alleged that funds collected for a film project were misappropriated.
Defense stance
Bhatt's argument: Dispute is contractual, not criminal
Bhatt's counsel argued that the dispute was civil in nature and did not warrant criminal proceedings. They claimed that under their agreement, Mumbai and not Udaipur had jurisdiction over any disputes. The counsel described Bhatt as a reputed filmmaker and informed the court about an agreement to produce four films with an investment of ₹40cr, followed by an additional ₹7cr later. One film was completed, but work stopped because the complainant stopped financing, the lawyer alleged.
Investigation findings
Police inquiry substantiated allegations against Bhatt
Opposing the plea, the respondent's counsel told the court that a preliminary police inquiry had found the allegations of misappropriation of funds "substantiated." It was also revealed that money provided for film production had been transferred to vendors and individuals unrelated to the project. The court noted these serious irregularities during its order and refused to grant any relief.
Previous ruling
Bombay High Court had earlier denied Bhatt's anticipatory bail plea
The court also noted that the Bombay High Court had earlier denied Bhatt's anticipatory bail plea. It reiterated that when a cognizable offense is prima facie made out, the High Court should not interfere with an ongoing investigation. The case continues to unfold as Bhatt remains in judicial custody along with his wife.
Complaint details
Murdia's complaint detailed alleged misappropriation of funds
The fraud case against Bhatt, his wife, and six others was filed by businessman Dr. Murdia. He alleged that one of the accused, Dinesh Kataria, proposed making a biopic on his wife at an event. Kataria later introduced Murdia to Bhatt in Mumbai, where they discussed the proposed biopic.
Alleged commitments
Bhatt and his wife's alleged promises to Murdia
The FIR alleges that Bhatt and his wife promised Murdia that if he financed an initial amount of ₹7cr and provided additional funding, they would produce four films for a total budget of ₹47cr. They allegedly assured him the projects would generate profits in the range of ₹100-200cr. However, Murdia later claimed the funds were misappropriated and diverted, leading him to approach the police.