A Mumbai court on Thursday granted interim bail to diamond merchant and film financier Bharat Shah till July 2 after he surrendered in a case in which he was accused of hurling casteist remarks at a watchman.

A sessions court allowed his appeal for interim relief on a personal bond of Rs 10,000.

Shah was booked under the Prevention of Atrocities Act for allegedly absuing the watchman Lahanu Pathare, a tribal, at a local resort.

The incident took place on February 8 after an argument between the two.

Earlier in the day, a metropolitan court in suburban Borivali had rejected his bail application and remanded him to judicial custody after he surrendered before it.

The Bombay high court had ordered Shah to be present before the Borivali court as the police were going to file chargesheet in the case on Thursday.

The magistrate's court had later directed the police to lodge an FIR against Shah under the Special Act. He then moved the high court seeking quashing of the FIR, but his plea was rejected.