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Bollywood actor Rajpal Yadav has suffered a major legal setback on Friday. The Delhi High Court upheld his conviction in cheque bounce cases linked to a loan taken for his 2012 directorial venture Ata Pata Laapata. It reduced his sentence from six months to three months. However, the court refused to grant him probation, and cited his repeated failure to stick to commitments made before the judicature.
Delhi High Court upholds conviction, reduces jail term
Justice Swarana Kanta Sharma dismissed petitions filed by Rajpal Yadav and his co-accused. He challenged a trial court’s conviction under the Negotiable Instruments Act.
The High Court reduced the sentence from six months to three months of imprisonment. It, however, noted that Yadav had repeatedly failed to comply with undertakings given to the court regarding repayment of the outstanding dues. The court observed that his conduct did not warrant the benefit of probation.
What is the cheque bounce case?
The case dates back to 2010, when Rajpal Yadav reportedly borrowed around ₹5 crore from Murli Projects Pvt. Ltd. He took the fund to finance his directorial debut, Ata Pata Laapata.
After failing to repay the loan, many cheques issued by Rajpal Yadav allegedly bounced due to insufficient funds. The dispute eventually led to seven cheque dishonour cases under the Negotiable Instruments Act. With accrued interest and penalties, the outstanding liability reportedly swelled to nearly ₹9 crore over the years.
Court rejected repeated pleas for more time
Earlier this year, the Delhi High Court had directed Rajpal Yadav to surrender before jail authorities. This came after the court observed that he had repeatedly defaulted despite giving assurances to repay the complainant.
The actor was briefly lodged in Tihar Jail before securing interim suspension of his sentence after depositing a substantial amount. During the proceedings, he reportedly paid over ₹4 crore but declined a proposed settlement of ₹6 crore. Since no final settlement could be reached, the High Court proceeded with its judgment, and ultimately upheld the conviction.
Timeline: Rajpal Yadav’s legal battle
2010: Rajpal Yadav takes a loan of around ₹5 crore from Murli Projects Pvt. Ltd. for Ata Pata Laapata.
2012: The film releases but fails commercially.
Following years: Multiple cheques issued towards repayment allegedly bounce, leading to seven criminal complaints.
2024: Trial court convicts Rajpal Yadav and sentences him to six months’ imprisonment.
February 2026: Delhi High Court directs the actor to surrender after finding repeated violations of repayment undertakings. He later receives interim suspension of sentence after making partial payment.
March 2026: The High Court extends interim relief while hearing the appeals, and noted substantial payments had been made.
July 2026: Delhi High Court dismisses the appeals, upholds the conviction, reduces the sentence to three months, and refuses probation.
Rajpal Yadav’s previous legal troubles
This is not the first time Rajpal Yadav has faced imprisonment. In 2013, he briefly served jail time after being convicted for filing a false affidavit before the Delhi High Court. The sentence was later suspended on appeal.
Despite legal setbacks, the actor has remained one of Bollywood’s most recognisable comic performers. He is known for films like Hungama, Garam Masala, Phir Hera Pheri, Bhagam Bhag, Bhool Bhulaiyaa, Partner, Malamaal Weekly and Bhool Bhulaiyaa 2.
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