The Bollywood film industry recently witnessed a major legal drama involving well-known director Vikram Bhatt. For those searching for the latest vikram bhatt 2026 update, the filmmaker has just received major relief from the Supreme Court of India. After spending over two months in a Rajasthan jail over allegations of a multi-crore financial fraud, Vikram Bhatt and his wife, Shwetambari Bhatt, have been granted regular bail.
Here is a detailed breakdown of what happened, the background of the ₹30 crore cheating case, the court’s latest ruling, and what the filmmaker had to say after his release.
What Happened to Vikram Bhatt Recently?
In December 2025, Vikram Bhatt and his wife Shwetambari were arrested by the Rajasthan Police in Mumbai. They were brought to Udaipur and placed in judicial custody. The sudden arrest sent shockwaves through the Indian entertainment industry, as it was linked to a massive financial dispute regarding unreleased movie projects.
The Background of the ₹30 Crore Fraud Allegations
The police complaint was filed by Dr. Ajay Murdia, the founder of Udaipur-based Indira IVF. Dr. Murdia alleged that the Bhatts persuaded him to invest over ₹30 crore to produce four films. One of these proposed projects was a biographical film about Dr. Murdia’s late wife.
According to the First Information Report (FIR), the complainant transferred the funds to a joint production company in various stages. However, Dr. Murdia claimed that the production house failed to deliver the movies as promised. The complaint accused Vikram Bhatt of using fake bills and documents to divert the investment into his own personal bank accounts instead of using it for actual filmmaking.
On the other hand, Vikram Bhatt’s legal team strongly denied these allegations. They argued before the courts that the payments were completely transparent. They stated that two of the four movies had already been completed, while a third was 70% finished. The defense maintained that the criminal case was just a pressure tactic used by the investor in what was actually a normal business disagreement.
Supreme Court Grants Regular Bail
In January 2026, the Rajasthan High Court rejected the bail applications of both Vikram and Shwetambari Bhatt, deciding that the police investigation into the diverted funds needed to continue while they remained in custody. The couple then appealed to the Supreme Court of India for relief.
On February 19, 2026, a Supreme Court bench led by Chief Justice of India Surya Kant set aside the Rajasthan High Court’s order. The apex court granted regular bail to the filmmaker, just days after offering similar interim relief to his wife.
A Focus on Mediation and Commercial Dispute
During the hearing, the Supreme Court made a very important observation. The judges noted that the conflict between Vikram Bhatt and Dr. Murdia looked primarily like a commercial transaction and a civil dispute, rather than a criminal cheating case. The bench highlighted that prolonged jail time was not justified for a business disagreement over film production contracts, especially when the accused were willing to cooperate with the law.
To solve the issue peacefully, the Supreme Court directed both parties to appear before the Supreme Court Mediation Centre. The court expects both sides to make genuine efforts to settle their financial dispute outside the regular trial process, while the police investigation continues independently.
Vikram Bhatt’s First Statement After Jail Release
After spending about two and a half months in Udaipur prison, Vikram Bhatt spoke to the media about his experience. The director called his time in jail his “fifth abode” and compared his struggles to the battles of Lord Krishna.
He stated that he had complete faith in the Indian legal system and knew the truth would eventually come out. Bhatt maintained his absolute innocence, claiming that the soil of Mewar might test the truth, but truth would always win in the end. He is now expected to return to Mumbai to resume work on his pending film projects, which his lawyers argued he could not complete from behind bars.
Fresh Allegations Over Unpaid Dues
While the Supreme Court bail is a huge relief, the director still faces other professional hurdles. In early February 2026, a casting director for Vikram Bhatt’s 2023 movie “1920: Horrors of the Heart” came forward with new claims. The casting director alleged on social media that several cast and crew members remain unpaid even years after the movie became a box office success. The production team allegedly kept delaying the payments by stating a lack of available funds.
What Happens Next?
Now that Vikram Bhatt is out on bail, the immediate next step is the court-ordered mediation. Both the filmmaker and Dr. Ajay Murdia will have to sit down with legal mediators to figure out a financial settlement for the incomplete movies.
Meanwhile, the criminal investigation by the Rajasthan Police will go on. However, because the Supreme Court views this mostly as a civil contract dispute, Bhatt’s legal team is in a much stronger position to defend him. If the mediation is successful and the financial dues are settled, the criminal charges could potentially be dropped or resolved in the near future.
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Frequently Asked Questions (FAQs)
Why was Vikram Bhatt arrested?
Vikram Bhatt and his wife Shwetambari were arrested in December 2025 by the Rajasthan Police. They were accused of cheating a Udaipur-based doctor out of ₹30 crore under the false promise of making four films and misappropriating the funds.
Is Vikram Bhatt still in jail?
No. As of mid-February 2026, the Supreme Court of India granted regular bail to both Vikram Bhatt and his wife, allowing them to walk out of the Udaipur prison.
What did the Supreme Court say about the case?
The Supreme Court stated that the issue appeared to be a commercial and business dispute over film contracts, rather than a severe criminal offense that requires keeping the accused in jail. The court advised both parties to solve the matter through mediation.
Who filed the cheating case against Vikram Bhatt?
The case was filed by Dr. Ajay Murdia, the founder of Indira IVF. He claimed that the money he invested for a biopic on his late wife, among other projects, was misused by Bhatt’s production company.
Will the promised movies still be made?
Vikram Bhatt’s lawyers informed the Supreme Court that two of the four planned movies are already complete, and the third is 70% done. Being out on bail will legally allow Bhatt to finish the remaining production work.