Music composer and filmmaker Palash Muchhal has broken his silence regarding allegations of financial fraud, labelling the claims as "baseless and factually incorrect." The response comes days after Vidnyan Mane, a Sangli-based actor and producer, approached law enforcement alleging that Muchhal cheated him of INR 40 lakh in connection with a film project. Palaash Muchhal Accused of Cheating Sangli Man of INR 40 Lakh, Police Probe Underway.

In a statement shared on social media on Friday, Muchhal asserted that the accusations were made with "malicious intent" to damage his public standing. The composer confirmed that his legal team, led by advocate Shreyansh Mithare, is currently exploring all available legal avenues to challenge the claims through official channels.

What Were Vidnyan Mane's Allegations?

The controversy surfaced earlier this week when Vidnyan Mane filed a formal application with the Sangli Superintendent of Police. According to the complaint, Mane was introduced to Muchhal in December 2023 through the family of cricketer Smriti Mandhana.

Mane alleges that Muchhal invited him to invest in an upcoming film titled Nazaria. The complainant claims he was promised a profit of INR 12 lakh on an initial investment of INR 25 lakh, along with a featured role in the movie. Mane states that he ultimately transferred a total of INR 40 lakh to Muchhal by March 2025, but the project was never completed, and his requests for a refund went unanswered.

Palash Muchhal ‘Caught Red-Handed With Another Woman’?

Mane told Hindustan Times that during the wedding celebrations of Palash Muchhal and Smriti Mandhana on November 23, 2025, the music composer was "caught red-handed with another woman in bed. Bhayanak scene that. He was beaten up by the Indian female cricketers. The entire family is chindi chor. I thought he'd get married and settle in Sangli, but it has completely backfired on me."

Palash Muchhal’s Legal Rebuttal

Addressing the situation via his Instagram Stories on Friday (January 23), Muchhal maintained his innocence and signalled a firm legal stance.

"In light of the allegations made by Sangli-based Vidnyan Mane on social media, I wish to state that these claims against me are entirely baseless and factually incorrect," Muchhal wrote. "They will not go unchallenged."

Palash Muchhal’s Response to INR 40 Lakh Fraud Claims – View Statement 

 

His lawyer, Shreyansh Mithare, reiterated that the matter would be dealt with strictly through appropriate legal channels. As of Friday, the Sangli police have confirmed that while a preliminary probe is underway to verify the details of the complaint, no First Information Report (FIR) has been registered.

Mithare told  HT, "He (Vidnyan) claims he paid us money, but there is no evidence whether he paid by cheque or bank transfer. All the allegations about Palash being caught with another woman, what is the evidence? We don't know this guy. We met him through Smriti's father. We have no direct connection with him. Why did he keep quiet so long? It's only after the marriage broke that he has turned up. Palash is exploring his legal options."

Context of Recent Controversies

The financial dispute follows a period of significant personal scrutiny for Muchhal. In late 2025, his high-profile wedding to Indian cricketer Smriti Mandhana was indefinitely postponed and later cancelled. Palash Muchhal Joins Hands With Shreyas Talpade for His Next Directorial; Shooting To Commence Soon.

At the time, the postponement was officially attributed to a health emergency involving Mandhana’s father. However, the split was followed by a wave of online speculation. Muchhal has previously urged the public to refrain from reacting to "unverified rumors" regarding his personal life.

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(The above story first appeared on LatestLY on Jan 23, 2026 11:15 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).