Here actor Rajpal Yadav surrendered on February 5, 2026, at the Tihar Jail after the Delhi high court refused his last minute request to be given extra time to surrender in an old cheque bounce and loan default case.
He was sentenced to six months imprisonment by the court following an observation that he violated its instructions more than once. The unpaid dues in the case that have been outstanding since 2010 involve the case which apparently grew to almost Rs 9 crore after his production business Ata Pata Laapata failed.
What has been defined as a business debacle over a period of more than ten years, has eventually started to take a turn as a legal war, which saw the imprisonment of Rajpal Yadav, successive efforts at reaching a compromise.
When Did It All Start?
The legal mess began in 2010 as per PTI, Rajpal Yadav lent out about 5 crore to M/s Murali Projects Pvt Ltd with the intention of funding the directorial debut, Ata Pata Laapata. The movie was not a box office hit and the company incurred significant losses.
Rajpal Yadav struggled to settle the loan as there were low returns after projecting the project. With time, the payment either due to interest or penalty or due to delayed payment made it a significant amount per transaction to create a total of close to Rs 9 crore on the outstanding.
To pay the installments, Rajpal Yadav had provided several cheques to the creditor. These cheques were however disregarded which led to criminal prosecution under the Negotiable Instruments Act.
A magisterial court in April 2018 found Rajpal Yadav guilty and his wife in various cases of cheque bouncing and turned him to 6 months of imprisonment. In 2019, a sessions court upheld this conviction and the matter was further appealed in the Delhi High Court.
Years Of Mystifications and broken commitments
Although the defaulting of loans is considered to be a civil case, the Delhi High Court was categorical about the failure of the Rajpal Yadav to keep on his commitments in the court.
He was allowed over a number of years to repay the amount through instalment. The court observed that he paid in part and he repeatedly made promises but failed to adhere to the agreed schedules continuously.
The court in its observations said that Rajpal Yadav had to pay 1.35 crore in all the seven cases he faced. It also ordered that the sum already deposited with the Registrar General should be discharged to the benefit of the complainant.
Two demand drafts of 75 lakh were deposited in October 2025. But according to the records of the court, close to Rs 9 crore was still outstanding to be paid.
In June 2024, the High Court placed the conviction of Rajpal Yadav on temporary stay, provided that he would take serious and honest steps to seek an amicable resolution. The court subsequently discovered that such efforts were not bearing any significant fruits.
High Court Orders Rajpal Yadav To hand himself in
Notification In order to appear before jail authorities, the Delhi High Court ordered Rajpal Yadav to report by 4 pm on February 4. The court noted that what he was doing could have been depreciated because he had broken promises on multiple occasions.
Failing to turn himself in by the due time, his senior counsel submitted a plea of mercy claiming that he was struggling to raise the money and he had arrived at Delhi at 5 pm.
The court refused the request and listed its heavy disapproval. Justice Swarana Kanta Sharma noted that this Court could not be expected to demonstrate or create special situations to a person, simply because the person is a member of a special background or industry… The leniency, necessary though in some instances, cannot be perpetrated unlimited, where it is continued to be similarly met with non-compliance.
It decided that the recall of the surrender order would send an inappropriate signal and did not give any additional relief.
The proceedings before the court saw Rajpal Yadav appear before that court on February 5, 2026. His lawyer advised the court that he was willing to give an installment of his demand draft of a value of 25 lakh rupees and stick to a new payment schedule.
Even though the decision was offered, the judge rejected the surrender order recall, highlighting that compassion should be opposed to discipline and the judicial system could not make special cases of people working in the film industry.
Rajpal Yadav later on in the day turned himself in at the Tihar Jail and started serving his six-month term. According to the jail authorities standard procedures were respected.
What Rajpal Yadav said after him giving the surrender?
E earlier speaking to Bollywood Hungama, Rajpal Yadav had spoken about being helpless as he had said to him, What to do? I have no money to pay back. can no other way out.”
He further confessed that the industry did not have much to offer in terms of support to the colleague, he said, everyone is alone.
Celebrities React
Upon the surrender of Rajpal Yadav, some of the film industry openly came forward to support him.
Sonu Sood, an actor nominated the part of Rajpal Yadav, and an offer amount. He posted in X, that Rajpal Yadav is an actor with a gift who has provided unforgettable work to our industry over the years. There are times, life is cruel not due to ability but due to timing which can be deafening. He will join my movie and I think this is the time that we all should… Individuals, directors, co-workers rise, (Produce together).
He also said, A small signature fee, which is made up on future employment is no charity, it is dignity. And across a bad time is going one of our own… That is why we demonstrate that we are not only an industry.
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