Rajpal Yadav, the well-known Bollywood actor, started serving a six-month sentence at Tihar Jail on February 5, 2026. This came after the Delhi High Court denied his final plea for an extension in a long-standing cheque bounce case involving a defaulted loan. The actor faced severe legal consequences due to his significant financial liabilities that escalated to nearly Rs 9 crore.
The Origins of the Legal Battle
Rajpal Yadav’s financial troubles date back to 2010, when he borrowed around Rs 5 crore from Murali Projects Pvt Ltd. The funds were intended to support his directorial debut, *Ata Pata Laapata*. Unfortunately, the film’s failure at the box office resulted in substantial losses, making it difficult for Yadav to fulfill his loan obligations.
As time passed, accumulating interest and penalties caused the debt to balloon. Efforts to repay the loan included issuing cheques that ultimately bounced, leading to criminal proceedings under the Negotiable Instruments Act. In April 2018, a magisterial court found him guilty, sentencing Yadav and his wife to six months in prison. This conviction was upheld by a sessions court in 2019.
Repeated Extensions and Court Observations
While loan defaults are usually classified as civil matters, the Delhi High Court took a firm stance regarding Yadav’s failure to adhere to court orders. He received several extensions over the years to pay the Rs 1.35 crore owed in various cases, but he consistently failed to adhere to the agreed-upon payment schedules.
- In October 2025, two demand drafts totaling Rs 75 lakh were deposited.
- Despite these payments, nearly Rs 9 crore remained as the total liability.
The High Court suspended Yadav’s conviction temporarily in June 2024, pending his sincere efforts to reach an amicable settlement, but ultimately found that these efforts had not produced substantial results.
Final Ruling and Surrender
On February 2, 2026, the Delhi High Court ordered Rajpal Yadav to surrender by 4 PM on February 4, citing his repeated breaches of court undertakings. When he failed to comply, his counsel attempted to request leniency, stating Yadav needed more time to arrange funds. The court strongly rejected this appeal, emphasizing that special circumstances could not be claimed due to Yadav’s background in the film industry.
On February 5, Yadav surrendered at Tihar Jail, where standard procedures were followed. His counsel had offered to submit a demand draft of Rs 25 lakh, but the court’s decision upheld the necessity of discipline over compassion in this matter.
Reactions from the Film Industry
Yadav expressed his feelings of helplessness following his surrender, stating that he could not see a way out of his financial troubles. In response, many in the film industry have publicly shown their support.
- Actor Sonu Sood announced he would offer Yadav a role and a signing amount, highlighting the importance of supporting fellow artists in tough times.
- Filmmaker Anees Bazmee emphasized the actor’s intention to repay and noted that such significant sums of money are challenging to settle all at once.
- Actor Gurmeet Choudhary shared his concerns, calling Yadav a talented artist deserving of support.
Rajpal Yadav continues to be a prominent figure in Bollywood, and amidst his legal troubles, he remains focused on his career. His upcoming film is *Bhoot Bangla*, co-starring Akshay Kumar, set for release on April 10, 2026.
