Law & Justice
Supreme Court Approves Rajpal Yadav’s Plan to Sell Property to Settle Cheque‑Bounce Debt
By Debayan Roy
The Supreme Court on Wednesday accepted Rajpal Yadav’s proposal to sell his ancestral property to pay the debt arising from a cheque‑bounce case linked to a loan taken for his 2012 film. A bench comprising Chief Justice Surya Kant, Justice Joymalya Bagchi and Justice V Mohana noted that Yadav has arranged to make an immediate payment of ₹2 crore. Yadav presented demand drafts worth ₹1.15 crore, and a prospective buyer of his property, Anant Prakash Yadav, will pay an additional ₹85 lakh by October 12. The Court recorded these arrangements in its order and said it would lay down a schedule for the remaining balance.
Yadav’s plea concerns a ₹5 crore loan from Murli Projects for the film Ata Pata Laapata. The parties entered into four agreements; the third agreement was replaced by a consent agreement dated April 21, 2013, which Yadav says voided the earlier security cheques. He alleges that Murli Projects returned only seven of the eight security cheques, which were dishonoured, leading to criminal complaints. In May 2024 a sessions court convicted Yadav and sentenced him to six months’ jail; the Delhi High Court later suspended the sentence after Yadav’s counsel assured settlement. The High Court observed that Yadav had not deposited the amounts he had promised, including ₹2.5 crore he sought to pay in instalments. In February 2026 the High Court directed Yadav to surrender; he surrendered on February 5 and was later granted an interim suspension after depositing ₹1.5 crore. He was then sentenced to three months’ imprisonment for failing to pay the remaining amount.
Yadav’s counsel informed the Court that he has ₹1.15 crore ready for payment and that a buyer of the ancestral property, present in Court, is willing to pay ₹85 lakh in advance. The buyer does not wish to complete registration until after Navratri, which begins Monday. Chief Justice Kant asked about the total sale consideration, noting the liability exceeds ₹2 crore. Yadav’s counsel replied that the property is worth more than ₹30 crore and that the buyer has the capacity to pay.
The complainant’s counsel agreed to the proposal, stating that if Yadav pays ₹2 crore now, the Court could grant a three‑month period to pay the balance. Justice Bagchi expressed disapproval of Yadav’s conduct, warning that the bench might increase his sentence from three months to two years, but said the accommodation was offered to ensure the complainant receives the money owed. The case will be heard again after two days.