SC grants bail to Vikram Bhatt, wife in 44.7 crore fraud case

Jaipur: The Supreme Court Wednesday granted bail to filmmaker Vikram Bhatt and his wife, Shwetambari Bhatt, in connection with a criminal case involving alleged financial irregularities amounting to approximately Rs 44.7 crore. The couple was arrested in Mumbai by Udaipur police in Dec last year. On Jan 31, the Rajasthan High Court's Jodhpur Bench dismissed their bail plea, prompting them to approach the Supreme Court for relief.
A three-Judge Bench comprising Chief Justice of India Justice Surya Kant, Justice Joymalya Bagchi, and Justice Vipul M Pancholi passed the order while hearing a special leave petition against the rejection of bail by the Rajasthan High Court. The case arose out of an FIR registered at Bhupalpura Police Station in Udaipur, alleging offences of cheating, forgery, and diversion of funds in relation to film production agreements executed through LLP entities for proposed film projects. The prosecution claimed that the dispute involved financial transactions running into Rs 44.7 crore. During the course of the hearing, the Supreme Court recorded the statement of the complainant expressing willingness to explore an amicable settlement of the dispute.Senior Advocate Vikas Singh, appearing for the complainant, submitted that there was no objection to the accused being released on bail to facilitate settlement talks. While the complainant earlier indicated no objection to interim bail granted to Shwetambari Bhatt, the SC, taking note of the overall circumstances, granted bail to both accused.Senior Advocate Siddharth Dave, appearing for the petitioner-accused, informed the SC that both sides were keen to resolve their disputes. He further submitted that after Shwetambari Bhatt was earlier released on interim bail, the complainant communicated through email seeking completion of the contractual obligations relating to film production.Additional Advocate General Shiv Mangal Sharma, who represented the govt of Rajasthan, opposed the bail plea, stating, "Our investigation is still at a crucial stage. Most witnesses are based in Mumbai, and they might be influenced if bail is granted."Rejecting the State's objections, the Bench observed that since both parties expressed a clear intent to settle their disputes, they should be permitted to pursue mediation. Accordingly, the matter was referred to the Supreme Court Mediation Centre.The SC, however, clarified that no stay was granted on the ongoing investigation, and the investigating agency is free to proceed in accordance with law. The criminal probe will continue independently while the parties attempt an amicable resolution through mediation.