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When Rajpal Yadav spent 3 months in jail, lost ancestral property

Rajpal Yadav, who earlier spent three months in Tihar Jail, is now facing fresh legal trouble in a Rs 9 crore loan case. Amid the ongoing battle, a portion of his ancestral property has also been sealed over unpaid dues.

February 13, 2026 / 16:33 IST
Rajpal Yadav is in Tihar jail
Snapshot AI
  • Rajpal Yadav jailed for non-payment of Rs 9 crore loan.
  • Delhi High Court denied his plea for more time in the case.
  • Bollywood stars like Salman Khan and Sonu Sood offered support.

Rajpal Yadav, who turned himself in on February 5 due to non-payment of loans of Rs 9 crore, is presently serving his sentence at Tihar Jail. The Delhi High Court has denied his last-minute request for additional time in the ten-year cheque bounce case, citing his persistent non-compliance with court undertakings.

However, this is not the first time the actor spent time in jail. He had already spent three months in Tihar Jail in 2018 prior to this surrender, having defaulted on a loan of Rs 5 crore.

Rajpal was sentenced to three months in Tihar Jail in 2018 for failing to repay a loan of Rs 5 crore from Murali Projects Pvt Ltd, the same sum he had borrowed to make his movie Ata Pata Laapata.

According to PTI, Rajpal Yadav borrowed roughly Rs 5 crore from M/s Murali Projects Pvt Ltd in order to finance Ata Pata Laapata, his directorial debut.

Rajpal sent the lender multiple checks after the movie's failure. But because these checks were returned, criminal charges under the Negotiable Instruments Act were brought.

Rajpal Yadav and his spouse were found guilty in multiple cheque bounce instances by a magistrate's court in April 2018 and given a six-month jail sentence.

The legal dispute continued for years despite appeals. In the meantime, penalties under the Negotiable Instruments Act and 15 years of compound interest caused the outstanding amount to rise to almost Rs 9 crore.

Also Read: Rajpal Yadav pays Rs 2.5 crore in Rs 9-crore cheque bounce case, his lawyer says 'Let’s see what court decides'

He reportedly spent three months behind bars. After being released, he spoke with Siddharth Kannan about the time frame.

Rajpal revealed that during his three-month imprisonment, he impressed the prison administration.

He said, "After three months, when I was leaving (the jail), the jail superintendent and staff gave me two certificates instead of one. He said, 'This place is very historic, and in my whole life, I have not seen someone like you. We got inspired by you. We thought we would hear your complaints every day, but in these three months, you have made the walls come alive.'"

Also Read: Rajpal Yadav’s bail plea deferred to February 16 amid court’s sharp observations; read to know more

A Mumbai bank sealed off a portion of Rajpal Yadav's ancestral property in his home area of Shahjahanpur, Uttar Pradesh, in August 2024 due to non-payment of a debt, according to PTI.

The actor obtained a loan from the Central Bank of India's Mumbai branch by mortgaging his property in his hometown, according to Manish Verma, manager of the Shahjahanpur office.

Also Read: Timeline of Rajpal Yadav’s cheque bounce case: From film loan to Tihar jail

In 2005, Yadav established a production company called 'Navrang Godavari Entertainment Limited' under his parents' name, according to people close to the actor. He obtained a loan of Rs 5 crore from the Central Bank of India's Bandra Kurla Complex branch in Mumbai.

He owed the bank Rs 11 crore at the time of the sealing.

However, several personalities from Bollywood, including Sonu Sood, Salman Khan, Ajay Devgn and others have chimed in to help Rajpal.

Gayatri Rani
Gayatri Rani is a Senior-Sub Editor with over three years of experience in delivering Hollywood and Bollywood news.
first published: Feb 13, 2026 04:33 pm

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