An Ismaili Muslim born in East Africa, Bhatia was educated at The Scindia School and passed out in 1948.

In 2006 he was the chair of the British Edutrust foundation, the organisation planning to sponsor Rhodesway School.

[6] In 2003 Lord Bhatia received the Beacon Fellowship Prize for his leadership role in countering social deprivation and exclusion in the UK and internationally.

In December 2013, BBC Newsnight reported that Lord Bhatia had been accused by the Ethnic Minority Foundation of misappropriating £600,000 from the charity.

Lord Bhatia was suing the charity for unfair dismissal, and his lawyers said that the allegations were confusing the historical position with the present dispute.