Diamond merchant and film financier Bharat Shah's elder brother Bipin Shah is angry. Bipin -- also a diamond merchant -- says he feels cheated. The Mumbai police had arrested Bharat Shah under the Maharashtra Control of Organised Crime Act on January 8 for using slush funds to finance Bollywood films. Shah is to remain in police custody up to January 19.

In the first interview given by any member of Bharat Shah's family, Bipin Shah spoke to Senior Editor Sheela Bhatt about the Bollywood Badshah and how difficult it is to make money and live peacefully in India.

Can you comment on the allegations made by the Mumbai police?

It's bogus. Humbug. My brother has no underworld links.

Haven't you heard the Shakeel tapes?

It's rubbish. No tapes exist. It's all cooked up. Just like the way they shoot Hindi films, they have created these tapes. My brother has never spoken to (Chotta) Shakeel or Dawood (Ibrahim). You should know well who are the kind of people who talk to Shakeel and Dawood?

To some, the police allegations sound logical. Bharatbhai's stakes were high, he needed the underworld connections to remain on top.

Do you know what his bank credit is? Why don't you talk to his bankers? I don't want to tell you. (According to sources, his bankers would lend him more than Rs 500 crores on credit at any given time.) I can assure you one thing -- he has so much goodwill that the diamond industry alone will give him Rs 2,000 crores on credit for six months.

Is there any way you can convince the courts of his innocence?

Oh easily. The moment after his arrest he told us: "Let me come out. I'll tell the truth, I'll prove my innocence."

I would like the onlookers to ponder over these facts:

One, when Nazeem Rizvi was arrested many people told Bharatbhai to fly out of India. He went abroad too, but came back. He kept asking, "How can the police arrest me when I have not committed any crime?"

Two, the day before his arrest, the newspapers were speculating that he might come into the police net. He was not moved. Even late at night he was told by someone that the police is doublecrossing him. But Bharatbhai ruled out his arrest.

Even on the day of his arrest he was called by a senior police officer. He assured my brother he would release the negatives of Chori Chori Chupke Chupke to him. He asked him to come to Saat Bangla, near Lalbaug, instead of the usual Crawford Market HQ. Bharatbhai thought that was fine because his application, claiming the negatives of the film was pending in court.

Next day was the hearing. Till 2.40 pm or so, he was unaware of his arrest. At the last moment, they told him 'we will produce you before the court.'

At Dhirubhai Ambani's function (when the Bombay Municipal Corporation felicitated the Reliance chairman) he (Bharat Shah) was sitting besides Chhagan Bhujbal. They had a good time together. There was nothing to worry. People do wrong things to get money, but he had enough of it.

Why don't you try to understand the working of the film world? Why would he just ask for 10, 12 crores from the underworld or take the Mafia's money to make films when he has so much cash himself?

How did he get involved with Rizvi?

Bharat always got proposals from everywhere. He also got the proposal of Chori Chori... along with the dates of the stars involved. He found the film interesting and reconfirmed the dates with the stars. After that he too agreed to finance the project

Who introduced Rizvi to him?

I think it was Manmohan Shetty of Adlabs (a wellknown film processing unit) who sent Rizvi's proposal to Bharat.

Did Bharat suspect Rizvi had underworld connections?

Bharat was only the financier. He was not involved in the day to day affairs of making the film. And the film was not made in six months as reported by the media, it took one-and-a-half-years.

You know the reality today, we hear that people talk to Dawood and Shakeel. How are we to know that Rizvi had links (with them)? I am again asking you to go through all the films Bharat has financed. His banners are reputed and directors are respected. He has financed films by directors like Yash Chopra, Sanjay Leela Bhansali... so why would stars act difficult about giving dates and arriving on time on the sets of such respected directors?

What about the police allegations regarding Mr Morani and Mr Bhatija of Dubai?

The police allege that he was involved in some transactions worth $ 45,000. Are you kidding? We know Mr Morani as phatakawala (firecrackers merchant).

The Bhatija surname is unheard of; we don't know anyone by that name. The whole case is fabricated. I can challenge that nothing will come out of the case. And let me inform you that so far the police has not given us any papers. We don't have any copy of the tapes. No transcripts... no charges… nothing. We are working with our lawyers on the basis of the court order.

Is it true that he was making a loss in the diamond market so he shifted his attention to the film industry?

We have been in the film industry for the last 46 years. Our brother Dhanvant was the first to join (the industry). When Bharat graduated, around that time he (Bharat Shah) financed Phool aur Patthar. That was his first venture in the Hindi film world. Though he entered the industry at that time, he remained busy with the diamond business. But later on he financed Ram Teri Ganga Maili.

Since then -- even if he touches sand it turns into gold. He is very, very lucky. Tezaab, Chandini and there was a hit every two years.

At this point of time, how much money do you think he has invested in the new films expected to be released this year? Rs 100 crores?

See, he is needed for the creditworthiness of the film projects. When Bharatbhai supports any producer, the market knows that the producer will be able to finish the film. People who buy the rights (of the film) know the film will be released on time. Do you know one thing -- even his films that have flopped have made money?

How?

See, whenever my brother finances a film, he keeps the world rights and other rights with him. He then sells the overseas rights, music rights and satellite rights. You won't believe -- but the all India territory he gets it free! Even if the film flops at the box office, he can recover his investment from the satellite and music rights.

When Satya was released on television for the first time, the money he received from just one telecast was more than the budget of the making of Satya. What are you talking about? Will he ask for money from the underworld or even think of threatening anyone to recover his dues?

For the past few days he was very angry because he was cheated by someone he trusted very much. He was a close relative. He was very sad, but didn't adopt any wrong method. I'll arrange an interview for you with an agent in Banganga, he knows about one deal. There was a tenant who lived on 4,000 square feet land of ours. Without any hassle Bharat gave him 6,500 square feet of land in an exchange deal. If he knew the Mafia, why would he waste his money?

There were allegations that he approached the Dawood Ibrahim gang to get hold of his land in Mira Road (an area north of Bombay)?

He acquired that land at a throwaway price. Someone owed him money and he handed over this land to him. Then some 200 notorious goondas encroached it. At that time I went there with my weapon and daringly faced them. I forced them to evacuate. He was not involved in the problem.

He went on to earn enough out of that project which has 90,000 square feet of construction and made more money out of that project than his diamond business. He allotted a prime portion of that land worth Rs 3, 4 crores for a Jain temple.

You don't know my brother, he is a person who will not tolerate any wrongdoing. If he is not involved, he will not bow down. He is not perturbed because he is in police custody. He is co-operating with them.

Do you think Deputy Chief Minister Chhagan Bhujbal is settling some scores with him?

He met my brother at a public function after Rizvi's arrest. He hugged him that day.

If he is not involved with the underworld, if the tapes are bogus, then how come he is in police custody?

Because of the diamond mines in MP. It's all due to that deal. He has got the contract to excavate diamonds there. Also because after partnering B4U -- the television channel -- he is being targeted more.

In our country politicians are capable of finishing anyone. On one side the government is talking of attracting NRIs, but everyday politicians are creating NRIs in this country. It's difficult to make money and live peacefully in India.

The Bharat Shah Case: The Complete Coverage

The Rediff Interviews