The Delhi High Court has reserved its judgment in the long-standing legal dispute involving actor Rajpal Yadav, after a series of court-mediated settlement attempts ended in a deadlock on April 2. The case, which centres on an INR 9 crore cheque bounce, has seen multiple judicial interventions over the years to resolve the financial liability. Justice Swarana Kanta Sharma presided over the hearing, expressing dissatisfaction with the actor’s inconsistent stance regarding the repayment of outstanding dues to the complainant, Murali Projects Pvt Ltd. Rajpal Yadav Thanks Delhi HC and Bollywood in FIRST Statement After Getting Released From Tihar Jail in INR 9 Cr Cheque Bounce Case (Watch Video)

Rajpal Yadav Rejects INR 6 Crore Settlement

During the proceedings, the court attempted to broker a middle ground between the two parties. At one point, the complainant agreed to a reduced settlement of INR 6 crore to finalise the matter. However, the proposal was rejected by Yadav, who appeared virtually and delivered an emotional plea. The actor cited significant financial hardship, stating he had already sold five flats to cover previous payments. "I am not emotional... send me to jail five more times," Yadav told the court, signalling a breakdown in negotiations. Justice Sharma criticised the lack of progress and the shifting nature of the actor’s undertakings. "I am not getting my answers. The undertaking said something else, and now you are saying something else," the judge remarked, cautioning that valuable judicial time was being wasted.

Rajpal Yadav Faces Legal Heat Over Unpaid Dues

Advocate Avneet Singh Sikka, representing the complainant, argued that Yadav’s prior conviction under Section 138 of the Negotiable Instruments Act meant he could no longer avoid liability. Sikka pointed out that a revision petition filed in 2024 carried an unexplained delay of 1,894 days. The counsel emphasized that completing a prior prison sentence does not absolve a debtor of their financial responsibility. Despite repeated assurances over the years, the counsel noted that the core dues remained unpaid, leaving the complainant with no choice but to seek a final judicial ruling.

Rajpal Yadav Loan Case Timeline Explained

The legal dispute traces back to 2010, when Rajpal Yadav borrowed INR 5 crore to fund his directorial debut Ata Pata Laapata (2012). However, the film’s poor box office performance resulted in heavy financial losses, leaving him unable to repay the loan. In 2018, a magisterial court convicted Yadav in a cheque dishonour case and sentenced him to six months in prison. The following year, in 2019, a sessions court upheld the conviction, while the outstanding amount grew to nearly INR 9 crore due to accumulated interest. In 2024, the actor was granted interim bail in February after depositing INR 1.5 crore, with the court continuing to monitor his repayment progress. Cheque Bounce Case: Rajpal Yadav Directed by Delhi HC to Surrender by February 4, Bench Criticises Actor for Repeated Non-Compliance.

Current Status

With both parties unable to reach a consensus on a structured payment plan including a judicial suggestion of a INR 3 crore payment within a stipulated timeline the High Court has officially reserved its verdict. The forthcoming judgment will determine the final liability and legal consequences for the actor, who has previously served time in Tihar Jail in connection with this dispute.

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(The above story first appeared on LatestLY on Apr 02, 2026 09:19 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).