In a significant legal breakthrough for Bollywood filmmaker Vikram Bhatt, the Supreme Court of India granted regular bail to him and his wife, Shwetambari Bhatt, on Thursday, February 19, 2026. The duo had been in custody since December 2025 in connection with an alleged financial fraud involving over ₹44 crore.
The Case: A Film Project Gone Wrong
The legal battle stems from an FIR lodged at the Bhupalpura Police Station in Udaipur by Dr. Ajay Murdia, the founder of Indira IVF.
According to the complaint, the Bhatts allegedly induced Dr. Murdia to invest a substantial sum—initially reported as ₹30 crore but cited by the complainant’s counsel in court as reaching ₹44.7 crore—to produce a series of films, including a high-profile biopic about his late wife.
The core allegations include:
- Misappropriation of Funds: The complainant alleges that the funds were siphoned off using "fake bills and vouchers."
- Failure to Deliver: Out of a contracted four-film deal, the complainant claims the highest-budget projects never commenced.
- Breach of Trust: The prosecution argued that the couple used their industry influence to lure the businessman into a "fabricated" investment scheme.
"A Commercial Dispute, Not a Crime"
Represented by senior advocates including Mukul Rohatgi and Siddharth Dave, the defense successfully argued that the matter was essentially a civil dispute over a business transaction.
The defense contended that the criminal proceedings were an attempt to "arm-twist" the filmmakers because the projects did not achieve commercial success. Rohatgi famously remarked in court, "Both movies flopped. It is not my fault. You can’t put the director and his wife in jail because a movie didn't work."
The Supreme Court's Directive: Mediation Over Incarceration
A three-judge bench, led by Chief Justice of India Surya Kant, set aside the Rajasthan High Court's earlier order denying the couple bail. The bench observed:
"The dispute essentially pertains to a commercial transaction... It may be appropriate for the parties to resolve the disputes through mediation."
Key highlights of the Court's ruling:
- Regular Bail: The interim protection previously granted to Shwetambari was extended into regular bail for both.
- Mediation Referral: The Court directed both parties to appear before the Supreme Court Mediation Centre to explore an amicable out-of-court settlement.
- No Stay on Investigation: While the duo is out on bail, the bench clarified that the criminal investigation by the Rajasthan police will continue independently.
A Stern Warning to the State
During the proceedings, the Bench took "serious exception" to reports that the case had been discussed in the Rajasthan State Assembly, where the Court's previous grant of interim bail was reportedly questioned. CJI Kant warned that the judiciary would not tolerate political interference, stating that the court would not hesitate to transfer the case to Mumbai if "any misadventure" occurred.
What’s Next for the Bhatts?
With their release secured, Vikram and Shwetambari Bhatt are expected to focus on the mediation process. The filmmaker has consistently denied all allegations, claiming he possesses emails and contracts to prove his innocence and suggesting that the police were "misled" by the complainant.