Kumar was arrested Friday. He was dragged to court by Jayantilal Gada of production house Popular Entertainment Networks Ltd. (PEN Ltd). Gada had lent Rs.6 crore to Kumar to make two films, however, the latter used half of the funds to build a mall in Jamnagar, Gujarat.
An official from Juhu police station told IANS: "The court has taken Mehul Kumar under custody yesterday. He has been arrested and is in Arthur Road Jail."
Kumar took money from Gada in 2000. However, he ended up making just one film, without returning the money to Gada.
Gada had approached the court in 2010. The court then directed the Juhu police station here to lodge a case against Kumar and conduct an inquiry.
Gada hopes to get justice.
"I had given Mehul a total of Rs. 6 crore to make two films. With Rs.3 crore, he made
'Kitne Door Kitne Paas' (2002) and then he took Rs.3 crore for his second film, which never went on floors.
"He went and spent Rs.4 crore meant to make a film, on building a mall in his home town in Jamnagar. I am glad he is under custody and hope to get justice," Gada told IANS.