SC relieves Vikram Bhatt in Rs.30 crore cheating allegations, says Criminal Process cannot be used to Recover Money

On Friday, the Supreme Court granted interim bail to filmmaker Vikram Bhatt and his wife Shwetambari Bhatt in a Rs.30 crore cheating case, signalling judicial restraint against using criminal prosecution as a tool for financial recovery. The order offers immediate relief to the couple, who have been in custody since December, and raises a wider caution for economic offence prosecutions.

The case stems from a complaint filed by a Udaipur based businessman alleging that substantial funds were advanced for a proposed film project but were later misappropriated through fabricated bills and diverted into personal accounts. The Rajasthan police arrested Vikram Bhatt and his wife in December 2025 and brought them to Udaipur, where they remained in judicial custody after the Rajasthan High Court declined bail earlier this year.

Before the Supreme Court, senior counsel Mukul Rohatgi argued that incarcerating all accused persons at the threshold was unjustified, while the prosecution opposed bail citing the gravity of the alleged financial fraud.

Weighing the competing claims, the Apex Court observed that criminal proceedings in such cases cannot be reduced to mechanisms for enforcing repayment. The Bench remarked that “these cases cannot be used to recover money,”underscoring that pre-trial detention is not meant to serve as leverage in commercial disputes.

Taking note of the circumstances, the Court directed the Chief Judicial Magistrate to release Vikram Bhatt and his wife on interim bail on appropriate terms, issued notice to the complainant and the State, and listed the matter for further hearing.

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