- Rajpal Yadav faces recovery action by Central Bank over Rs 16.61 crore unpaid loan
- Bank issued attachment notice on Yadav's Uttar Pradesh ancestral property
- Online auction of mortgaged properties set for September 9, 2026 if dues unpaid
Actor Rajpal Yadav is facing fresh financial trouble after the Central Bank of India initiated recovery proceedings against his ancestral property in Uttar Pradesh over an alleged unpaid loan of Rs 16.61 crore.
The bank has issued an attachment notice and warned that the mortgaged properties could be auctioned online on September 9 if the dues are not cleared within the stipulated period.
The development comes just weeks after the Delhi High Court sentenced the actor to three months' imprisonment in a cheque bounce case linked to the same loan.
A source told NDTV, "According to the bank, Rajpal Yadav, his wife and his mother have outstanding dues of around Rs 16.61 crore. The mortgaged properties will be auctioned online on September 9, 2026, to recover the loan. Those wishing to participate in the auction will have to deposit an earnest money amount of Rs 31 lakh by September 7, 2026."
Central Bank Begins Recovery Proceedings
According to reports, the Central Bank of India has pasted an attachment notice on Rajpal Yadav's ancestral home in Kundra village in Uttar Pradesh's Shahjahanpur district.
The bank has stated that the outstanding dues stand at Rs 16.61 crore. If the amount is not repaid within 34 days, the mortgaged properties will be auctioned online on September 9.
Besides the ancestral house, another property in Shahjahanpur has also been included in the recovery process. Reports estimate the combined value of the two properties at around Rs 3.19 crore.
Family Says Talks With Bank Are Ongoing
Rajpal Yadav's elder brother, Shripal Yadav, told Dainik Bhaskar that discussions with the bank are already underway and expressed confidence that the issue would be settled before any auction takes place.
"This is an old matter. Talks are underway with the bank regarding loan repayment. The matter will be resolved soon. Currently, there is no situation like a property auction," he said.
Central Bank manager Anuj Verma also confirmed that the attachment notice had been placed on the ancestral property.
"A notice has been put up on the building located in Kundra, the ancestral village of Shahjahanpur. The bank had also pasted a notice in this matter about two years ago. At that time, an agreement was reached between Rajpal Yadav and the bank regarding loan repayment."
Loan Was Taken For Ata Pata Lapata
The financial dispute dates back to Rajpal Yadav's directorial debut, Ata Pata Lapata.
According to PTI, the actor incorporated Navrang Godavari Entertainment Limited in 2005 in his parents' name and later secured a loan of ₹5 crore from the Central Bank of India's Bandra Kurla Complex branch in Mumbai to finance the film.
However, the film underperformed at the box office, and the loan reportedly remained unpaid. Over the years, interest and other charges accumulated, taking the outstanding amount to ₹16.61 crore, according to the latest bank notice.
To secure the loan, Rajpal allegedly mortgaged multiple properties in Shahjahanpur. Reports further state that properties belonging to his wife, Radha Yadav, and his mother, Godavari Yadav, were also pledged as guarantees.
Bank Had Earlier Sealed Part Of His Property
This is not the first recovery action against the actor.
In August 2024, the Central Bank had sealed a portion of Rajpal Yadav's Shahjahanpur property after the outstanding dues reportedly rose to around Rs 11 crore.
According to PTI, officials from the bank's Mumbai branch sealed part of a house near the Dak Bungalow in Shahjahanpur. Local residents had claimed the action was carried out so quickly that several electrical appliances inside the building were left switched on.
At the time, the Shahjahanpur branch manager had confirmed that the property had been mortgaged against the loan obtained from the bank's Mumbai branch.
Cheque Bounce Case Linked To The Same Loan
The latest attachment proceedings come amid Rajpal Yadav's ongoing legal battle in a cheque bounce case arising from the same financial dispute.
On July 7, the Delhi High Court sentenced the actor to three months' imprisonment in seven cheque bounce cases and directed him to pay Rs 1.05 crore in each case. The court also noted that he had already deposited nearly Rs 2 crore, which would be adjusted against the total liability.
The case dates back several years. In April 2018, a magistrate's court convicted Rajpal Yadav and his wife, Radha Yadav, and sentenced him to six months in jail. The Sessions Court upheld the conviction in 2019.
In June 2024, the Delhi High Court stayed the sentence temporarily and directed the actor to clear dues of around Rs 9 crore. After he failed to comply with the directions, the court ordered him to surrender in February 2026. Rajpal surrendered before Tihar Jail on February 5 and was granted interim bail 12 days later.
On the professional front, Rajpal Yadav was recently seen in Welcome to the Jungle and will next appear in Priyadarshan's Haiwaan, alongside Akshay Kumar and Saif Ali Khan.
(Inputs by Rohit Pandey)