₹5 Crore Was Investment Not Loan, Cites 2012 Agreement, Rajpal Yadav’s Lawyer Tells Delhi HC

Actor Rajpal Yadav is currently lodged in Tihar Jail in connection with a long-running cheque bounce case linked to his 2012 directorial venture Ata Pata Laapata. The dispute stems from an alleged ₹5 crore amount taken in 2010 for the film, which later failed at the box office.

Court Proceedings and Bail Hearing

The Delhi High Court is now considering Yadav's bail plea, with the next hearing scheduled for February 16 before Justice Swarana Kanta Sharma. During recent proceedings, the court highlighted repeated delays in repayment despite earlier assurances.

The bench observed that Yadav had sought nearly 25-30 adjournments during revision and mediation hearings. It also noted that interest and penalties over the years have reportedly pushed the outstanding liability to nearly ₹9 crore.

On February 2, 2026, the High Court directed Yadav to surrender after finding non-compliance with earlier commitments. He surrendered around February 5-6 and began serving a six-month sentence in Tihar Jail.

Justice Sharma remarked that the imprisonment followed from failure to honour undertakings made before the court. The complainant, M/s Murli Projects Pvt Ltd, has been directed to file a formal reply to the bail application.

Background of the Dispute

The case dates back to 2010, when Yadav obtained ₹5 crore from the Delhi-based company for producing Ata Pata Laapata. The film was released in 2012 but underperformed commercially, after which repayment issues surfaced.

Seven cheques issued towards repayment reportedly bounced, triggering complaints under the Negotiable Instruments Act. Criminal proceedings were initiated against Yadav and his wife.

In 2018, a trial court convicted both and sentenced them to six months of simple imprisonment. The conviction was upheld in 2019. In 2024, the High Court suspended the sentence, expecting efforts toward clearing dues. However, the court later observed that payment commitments were not fulfilled.

Actor's Defence

Yadav has maintained that the ₹5 crore was an investment rather than a traditional loan. According to his counsel, Bhaskar Upadhyay, there was a consent decree for ₹5 crore that was later put into execution proceedings. The defence has argued that the matter should be examined on merit and that there were instances when the complainant allegedly refused to accept payment.

Before surrendering, Yadav expressed difficulty in arranging funds, stating he had limited financial means.

Support from Film Industry

The case has drawn public support from members of the film fraternity. The Federation of Western India Cine Employees (FWICE) has appealed for moral and financial assistance for the actor.

Singer Mika Singh announced a contribution of ₹11 lakh. Music producer Rao Inderjeet Singh Yadav pledged ₹1.11 crore, while Anup Jalota committed ₹5 lakh. Actor Sonu Sood publicly extended support and signed Yadav for a future film, stating the gesture was about dignity.

Singer Guru Randhawa and others have also indicated financial assistance or advance payments to help ease the liability.

With Yadav in Tihar Jail and the alleged dues rising to nearly ₹9 crore, the Delhi High Court will now weigh his bail plea on February 16. While support from colleagues continues to grow, the court has emphasised that any relief must align with legal conditions and compliance with financial obligations.