Charges were filed against him and six policemen who are accused in the 1990 Khambalia custodial death case. Bhatt was assistant Superintendent of Police (ASP), Jamnagar when the custodial death occurred in 1990. (Sanjeev Bhatt in Custody, arrest was inevitable)
On Oct 10, 1990, 133 people, including one Prabhu Das Vaishnavi, were arrested in the wake of communal flareup at Jamjodhpur. These culprits were kept under police custody for a month before Vaishnavi was admitted in a hospital upon his release Nov 8, 1990. He died after 10 days in the hospital.