The long-standing legal battle involving actor Rajpal Yadav has reached a turning point as of February 2026.
Dispute
The case dates back to 2010–2012, when Rajpal Yadav borrowed money to fund his directorial debut, Ata Pata Laapata.
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Loan: Yadav borrowed ₹5 crore from M/s Murali Projects Pvt Ltd (owned by businessman Madhav Gopal Agrawal).
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Intent: The funds were meant to finish production of film. However, film failed commercially at box office, leaving Yadav in severe financial distress.
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Over 14 years, due to interest, penalties, and unpaid dues, the outstanding amount reached to approximately ₹9 crore.
Legal Proceedings
Matter entered legal system under Negotiable Instruments Act after multiple cheques issued by Yadav were dishonored (bounced).
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2018 Conviction: A magistrate’s court sentenced Rajpal Yadav and his wife, Radha, to six months in jail. He served roughly three months of this sentence in 2018.
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2026 Surrender: After years of appeals and repeated failure to meet court-mandated repayment deadlines, Delhi High Court took a strict stance. Justice Swarana Kanta Sharma noted that Yadav had breached his undertakings to the court multiple times. He was ordered to surrender and was sent to Tihar Jail on February 5, 2026.
Recent Developments (February 2026)
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Interim Bail: On February 16, 2026, Delhi High Court granted Yadav interim bail and suspended his sentence until next hearing on March 18, 2026.
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Conditions for Release: Bail was granted after Yadav deposited ₹1.5 crore with the complainant. He was also ordered to surrender his passport and is restricted from leaving country.
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Following his latest incarceration, several Bollywood figures—including Salman Khan, Ajay Devgn, and Sonu Sood—reportedly stepped forward to offer financial and professional support.
Complainant’s
Businessman, Madhav Gopal Agrawal, recently broke his silence, stating that 14-year ordeal has been emotionally draining. He claimed:
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The transaction was a personal loan, not an investment (as argued by Yadav’s legal team).
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He had to cry like a child in front of actor to plead for his money back, as he himself had borrowed funds from others to lend to Yadav.
Current Status
Rajpal Yadav was released from jail on February 17, 2026. Upon his release, he expressed gratitude for support and appealed to film industry for work, stating he is ready to comply with all court directions. A press conference is expected soon where the actor intends to share his side of story.