Mumbai | Cricketer siblings Hardik and Krunal Pandya's stepbrother Vaibhav, who was arrested for allegedly cheating them of Rs 4 crore in a business venture, on Friday told a Mumbai court the entire matter was a family one and just a misunderstanding.

Vaibhav Pandya (37) made the submission through his lawyer during his remand hearing. His police custody was extended till April 16. He was held by Mumbai police's Economic Offences Wing (EOW) on Monday on the charges of criminal breach of trust, criminal intimidation, criminal conspiracy, forgery and other relevant sections.

He was produced before additional chief metropolitan magistrate (Esplanade court) L S Padhen at the end of his initial police remand on Friday.

During the hearing, Vaibhav's lawyer Niranjan Mundargi told court "it was a family matter and the case has been filed due to misunderstanding" and added that efforts were on to resolve the matter.

Mundargi further submitted that his client was cooperating with the probe and had no objection to the remand extension sought by police. The EOW had sought further remand for seven days claiming that the probe was not complete and material information had not been recovered from the accused as yet.

The magistrate, after hearing both sides, noted the probe agency has shown progress in the investigation and it needed more time to interrogate the accused as there were various financial aspects connected to the case.

According to police, Vaibhav, Hardik and Krunal set up a polymer business in partnership in Mumbai in 2021. While Hardik and Krunal invested 40 per cent of the capital each, Vaibhav invested 20 per cent and the profit-loss was fixed in the same 2:2:1 ratio.

As per police, it was decided that Vaibhav would handle daily operations of the business, but he allegedly set up another firm involved in the same business without informing Hardik and Krunal, in the process violating the partnership provisions.

Due to this development, profits of the original firm came down, which resulted in a loss of Rs3 crore to Hardik and Krunal, while Vaibhav's own profit increased by 20-33 per cent.

The accused also allegedly diverted around Rs 1 crore from the firm to his own account, police said, resulting in total loss of Rs 4 crore to the cricketer siblings.