- Rajpal Yadav is serving a jail term in Tihar for non-payment of loans totaling Rs 9 crore
- He previously served three months in jail in 2018 for defaulting on a Rs 5 crore loan
- His ancestral property in Shahjahanpur was sealed in August 2024 over outstanding loan dues
Rajpal Yadav is currently serving his sentence in Tihar Jail after surrendering on February 5 over non-payment of loans totaling Rs 9 crore. The Delhi High Court rejected his last-minute plea for more time in the decade-long cheque bounce case, citing his repeated failure to comply with court undertakings.
In 2018, Rajpal Spent 3 Months in Jail Over Loan Default
Before this surrender, he had already served three months in Tihar Jail in 2018 after failing to repay a Rs 5 crore loan.
In 2018, Rajpal served a three-month sentence in Tihar Jail for defaulting on a Rs 5 crore loan from Murali Projects Pvt Ltd—the same amount he had taken to produce his film Ata Pata Laapata.
According to PTI, Rajpal Yadav borrowed approximately Rs 5 crore from M/s Murali Projects Pvt Ltd to finance his directorial debut, Ata Pata Laapata.
After the film flopped, Rajpal issued several cheques to the lender. However, these cheques were dishonoured, triggering criminal proceedings under the Negotiable Instruments Act.
In April 2018, a magisterial court convicted Rajpal Yadav and his wife in several cheque bounce cases and sentenced him to six months' imprisonment.
Although appeals were filed, the legal battle dragged on for years.
Meanwhile, the outstanding amount escalated to nearly Rs 9 crore due to Negotiable Instruments Act penalties and 15 years of compounding interest.
As per reports, he served three months in jail. Upon release, he discussed the period in a chat with Siddharth Kannan.
Rajpal shared that prison authorities were impressed by him during his three-month stay. He said, "After three months, when I was leaving (the jail), the jail superintendent and staff gave me two certificates instead of one. He said, 'This place is very historic, and in my whole life, I have not seen someone like you. We got inspired by you. We thought we would hear your complaints every day, but in these three months, you have made the walls come alive.'"
Rajpal Lost Ancestral Property Over Loan Default
According to PTI, a part of Rajpal Yadav's ancestral property in his native Shahjahanpur district of Uttar Pradesh was sealed by a Mumbai bank in August 2024 over non-repayment of a loan.
Manish Verma, manager of the Shahjahanpur branch of Central Bank of India, said the actor had taken a loan from the bank's Mumbai branch by mortgaging his property in his native district.
Sources close to the actor said Yadav had set up 'Navrang Godavari Entertainment Limited', a production house in his parents' name, in 2005. He took a Rs 5 crore loan from the Bandra Kurla Complex branch of Central Bank of India in Mumbai.
At the time of the sealing, he owed the bank Rs 11 crore.
Why Is Rajpal Yadav in Tihar Jail Now?
On February 2, 2026, the Delhi High Court directed Rajpal Yadav to surrender before jail authorities by 4 p.m on February 5. The court observed that his conduct deserved to be deprecated due to repeated breaches of undertakings.
When Rajpal Yadav failed to surrender on time, his senior counsel made a "mercy plea," stating that he had been trying to arrange funds and reached Delhi at 5 p.m.
The court rejected the request and recorded its strong disapproval.
Justice Swarna Kanta Sharma observed, "This Court cannot be expected to show or create special circumstances for any person merely because such a person belongs to a particular background or industry. Leniency, though sometimes necessary, cannot be extended endlessly, especially when it is met with continued non-compliance."
On February 5, Rajpal Yadav surrendered and began serving his term in the cheque bounce case.
A-listers like Salman Khan, Ajay Devgn, and Sonu Sood have come forward to help the actor financially.
Also Read | Why Is Rajpal Yadav In Tihar Jail? Rs 9-Crore Cheque-Bounce Case Explained
