Metropolitan Magistrate A G Mohabe released Shah, who was present before the court, on a bail bond of Rs 2,000. The court had last month issued a warrant against Shah after he failed to appear before the court in a case filed against him.

Last month, the proprietors of Royal Palms Estates moved the Borivli court demanding a non-bailable warrant to be issued against 20 diamond merchants including Shah for furnishing false affidavits before the Bombay High Court last year over property dispute.

The proprietors of Royal Palms, Mohammed Nenci, Ahmed Nenci and Dilawar Nenci and the diamond merchants are embroiled in a dispute over the property of the Royal Palms club.

According to a suit filed last year by Shah, in the year 1993 the Nencis had signed agreements with 20 diamond traders including Shah involving properties about 21 acres each.

“After receiving the enitre amount, the Nencis refused to hand over the land and terminated the agreement,” Shah’s advocate I A Bagaria told PTI.