The long-drawn legal fight for one of Bollywood’s most popular comic actors came to a tragic end last month. On February 5, 2026, Rajpal Yadav surrendered at Tihar Jail to start his six-month sentence after the Delhi High Court refused an extension for further time in a decade-long debt and cheque bounce case.
The history of the crisis dates back to 2010, as Rajpal had borrowed around Rs 5 crores from M/s Murali Projects Pvt Ltd, which he had used for his directorial debut, Ata Pata Laapata. The film not performing at the box office had Rajpal in a fix, as he was unable to repay the borrowed amount over the years, which had increased to almost Rs 9 crores following the interest and penalty.
Despite the fact that there were repeated opportunities for settlement, cheques issued by Rajpal were dishonoured, which led to criminal proceedings. Although the actor had made partial payment of the dues, Rs 75 lakh in late 2025, the court said there was non-compliance of legal obligations.
On February 2, the court directed Rajpal to turn himself in by the 4th of the month. When Rajpal failed to meet the deadline, his counsel referred to the last-minute arrangements for arranging funds as a ‘mercy plea.’ Justice Swarana Kanta Sharma remained unmoved.
"This Court cannot be expected to show or create special circumstances for any person merely because such a person belongs to a particular background or industry," the judge said.
Not even a final offer of giving a demand draft of Rs 25 lakhs on the day of his surrender could undo the order.
"I don’t have the money to pay back. I can’t see another way out," Rajpal confessed to reporters moments before he stepped into Tihar jail. "We are all on our own" was what he said about the high stakes involved in the glamour world. "The industry has since rallied around the actor. Help has come from Sonu Sood who has offered Rajpal a role in a yet-to-be-released movie along with a signing fee to help restore his dignity. Similarly, filmmaker Anees Bazmee and actor Gurmeet Choudhary have come out in his support, reminding the public that behind the laughter Rajpal provided for decades is a man facing a brutal financial reality.
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