Vikram Bhatt faces another setback as Rajasthan High Court rejects plea to quash FIR, finds prima facie dishonesty

In a setback to Bollywood filmmaker Vikram Bhatt, who is currently lodged in jail along with his wife in a cheating case, the Rajasthan High Court on Monday dismissed his petition seeking quashing of the FIR registered against him and his associates in Udaipur.

According to PTI, Justice Sameer Jain refused to interfere in the matter, observing that the allegations appeared to involve deliberate diversion and misappropriation of funds rather than a mere contractual dispute.

‘Not merely a breach of contract’

While rejecting the plea, the High Court made it clear that the case prima facie discloses criminal intent. In its order, the 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 court further noted that the police investigation must continue, as the matter involved serious financial irregularities.

Complaint alleges misappropriation of film funds

The FIR was lodged by Ajay Murdia, a resident of Udaipur, who accused Vikram Bhatt, Shwetambari Bhatt, and others of cheating and criminal breach of trust. According to the complaint, funds collected in the name of a film project were allegedly misappropriated.

Bhatt subsequently approached the High Court seeking quashing of the FIR, arguing that the dispute was civil in nature.

‘Dispute is contractual, not criminal’: Bhatt’s argument

Appearing for the petitioner, Bhatt’s counsel submitted that the dispute stemmed from a breach of contract between two parties and did not warrant criminal proceedings. It was argued that under the agreement, Mumbai — not Udaipur — had jurisdiction over any disputes.

Describing Bhatt as a reputed filmmaker, the counsel informed the court that an agreement had been signed to produce four films with an investment of Rs 40 crore, followed by an additional Rs 7 crore later.

The counsel claimed that one film had already been completed, but the complainant allegedly stopped further funding, leading to the dispute.

Police inquiry found allegations ‘substantiated’

Opposing the plea, the counsel for the respondent told the court that the police had conducted a preliminary inquiry before registering the FIR. During this inquiry, the allegation of misappropriation of funds “was found to be substantiated”.

It was also brought to the court’s attention that the money provided for film production had been transferred to vendors and individuals who had no connection with the film project.

‘Evidence of fake invoices and fund circulation’

Refusing to grant any relief, the High Court observed that the preliminary investigation had revealed serious irregularities. In its order, the court stated, “The preliminary inquiry has revealed evidence of fake invoices and the circulation of funds.”

The court also took note of the fact that the Bombay High Court had earlier rejected Bhatt’s anticipatory bail plea. It reiterated that when a cognisable offence is prima facie made out, the High Court should not interfere with an ongoing investigation.