The legal tightening around Bollywood actor Rajpal Yadav has reached a critical juncture. During a high-stakes hearing on September 15, 2026, a three-judge bench of the Supreme Court headed by Chief Justice of India Surya Kant, alongside Justices Joymalya Bagchi and V. Mohana, granted the actor a final two-week window to deposit ₹2 crore with the apex court registry.
The bench expressed sharp skepticism regarding the actor’s history of unfulfilled judicial undertakings, with Chief Justice Surya Kant pointedly remarking during the proceedings:
“He’s perfect in doing drama and acting in Bollywood, he’s doing the same thing in court also.”
History of the Legal Dispute with Murli Projects
The sprawling financial conflict traces back over a decade and stems from a high-profile commercial loan gone awry:
- The Original Loan (2010): Rajpal Yadav borrowed approximately ₹5 crore from the Delhi-based financier M/s Murli Projects Pvt. Ltd. to fund his feature film directorial debut, Ata Pata Laapata.
- Box Office Failure: Unfortunately, the comedy project failed to generate expected theatrical returns, crippling the actor’s ability to service the loan on schedule.
- The Settlement and Mounting Dues: By 2012, an initial settlement agreement valued the total liability—factoring in accumulated interest and penalties—at around ₹11 crore. As multiple cheques issued by Yadav and his wife, Radha Yadav, bounced due to insufficient funds, Murli Projects initiated criminal complaints under Section 138 of the Negotiable Instruments Act. Over the years, with mounting interest, the total disputed sum expanded toward nearly ₹9 crore.
- Judicial History: Following a magistrate court conviction and subsequent rulings, the Delhi High Court upheld a three-month simple imprisonment sentence across seven separate cases, declining to condone delays in filing and ruling that previous payment assurances had been repeatedly broken. This prompted Yadav to challenge the verdict before the Supreme Court.
Statements From Both Parties
- The Complainant’s Stance: Representing Murli Projects Pvt. Ltd., Senior Advocate Ajit Sinha maintained that the company’s primary objective is the recovery of its lawful dues. The counsel emphasized that past leniency repeatedly resulted in broken commitments, leaving the complainant stranded without full restitution despite years of litigation.
- The Defence Stance: Appearing for the actor, Senior Advocate P.S. Patwalia urged the bench for breathing room, noting that Rajpal Yadav had already paid upwards of ₹4.25 crore across various stages of the dispute. Counsel assured the court that Yadav intends to clear liabilities by disposing of certain immovable properties belonging to his family, promising an upfront ₹2 crore deposit. Furthermore, defence submissions highlighted that the actor had previously served roughly four-and-a-half months behind bars across prior contempt and default periods.
Current Case Status and Court Directives
The Supreme Court balanced strict compliance measures with conditional interim relief:
- Financial Mandate: Yadav must deposit a demand draft of ₹2 crore with the Supreme Court Registry within two weeks and submit a concrete, binding repayment roadmap for the remainder of the balance.
- Passport Surrender: To ensure flight risk mitigation, the court ordered the actor to surrender his passport immediately to the authorities.
- Protection Extended: The bench extended Yadav’s exemption from surrendering and protection from immediate arrest.
- Next Hearing: The matter has been posted for formal review on October 5, 2026, with the court making it explicitly clear that failure to honour the two-week financial window will exhaust all judicial leniency.
By: Bollyo
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