Delhi HC Upholds Bollywood Actor’s Conviction: What is Rajpal Yadav Cheque Bounce Case?
The Delhi High Court has passed a judgement upholding Rajpal Yadav’s conviction in cheque-bounce cases and sentencing him to three months’ imprisonment. The court has also directed Yadav to pay over Rs 1 crore to the complainant in each of the seven complaints.
Justice Swarana Kanta Sharma has clarified that around Rs 2 crore already paid by the actor would be adjusted towards the amount. However, the court has also granted two months to approach the appellate court against the verdict. A detailed copy of the judgment is still awaited
What is Rajpal Yadav Cheque Bounce Case?
Rajpal Yadav’s cheque bounce case arose from a loan reportedly taken in 2010 to finance his directorial debut film, Ata Pata Laapata. According to court records and media reports, Yadav and his associates borrowed around ₹5 crore from a businessman, but after the film’s release, the loan was not fully repaid.
As part of the repayment arrangement, several cheques were issued, but they were dishonoured due to insufficient funds, leading to criminal complaints under Section 138 of the Negotiable Instruments Act, which penalises cheque dishonour.
Over the years, the outstanding amount reportedly increased to around ₹9 crore because of interest and other liabilities, and the dispute continued through multiple rounds of litigation.
Delhi HC Uphelds Magisterial Court’s Verdict
The court has issued this decision after a revised petition was filed by Yadav and his wife challenging the 2018 decision of a sessions court upholding the magisterial court’s decision in the cheque-bounce cases in April 2018. The magisterial court had sentenced the actor to six months’ imprisonment.
The high court temporarily suspended his conviction in June 2024, which is subject to adoption of “sincere and genuine measures” exploring the possibility of reaching an amicable settlement with the opposite party.
Yadav Faced Financial Losses
At that time, Yadav’s counsel had stated that it was a genuine transaction to finance the production of a movie which is bombed at the box office, resulting in huge financial losses to Yadav.
However, on February 2, the Delhi High Court asked Yadav to surrender on February 4, observing that he repeatedly breached his undertakings where the court had ordered him to repay the amount.
On February 16, the court suspended his sentence for the time being, allowing him to be released from Jail after depositing Rs 1.5 crore in the bank account of a complainant.
The actor’s behaviour “deserves to be deprecated,” according to Justice Sharma, who noted that Yadav failed to fulfil his financial obligations to the complainant company, M/s Murli Projects Pvt. Ltd., despite multiple opportunities and the Court’s substantial tolerance.
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