Rajpal Yadav's long-running financial dispute with Murali Projects Pvt. Ltd. has resurfaced dramatically, culminating in the actor's surrender earlier this month after the Delhi High Court rejected his plea for more time to repay mounting dues.
What began as a Rs 5-crore loan in 2010 to produce his film Ata Pata Laapata escalated into nearly Rs 9 crore over the years, following cheque-bounce cases and accumulated penalties. With the court ordering a six-month sentence, Yadav is now awaiting a crucial bail hearing even as the industry watches closely.
Origin Of The Dispute
The legal dispute dates back to 2010, when Rajpal Yadav reportedly borrowed Rs 5 crore from Murali Projects Pvt. Ltd. to finance his directorial debut Ata Pata Laapata. The film did not perform well at the box office, leading to financial strain.
Over time, unpaid dues, penalties, and interest reportedly escalated the amount to nearly Rs 9 crore.
Multiple cheques issued toward repayment were dishonoured, resulting in criminal proceedings under the Negotiable Instruments Act.
Court Proceedings And Surrender
On Feb. 2, 2026, the Delhi High Court directed the actor to surrender before jail authorities by 4 p.m. on Feb. 4. His plea seeking additional time was rejected.
Despite offering a Rs 25 lakh demand draft and a revised repayment plan, the court declined to recall its order, stating that discipline in legal undertakings must be maintained.
Yadav surrendered on Feb. 5 and is currently serving a six-month sentence. His bail hearing is scheduled for today.
Industry And Political Support
The case has prompted a visible response from members of the film fraternity and political figures.
Sonu Sood publicly announced that Rajpal Yadav would be part of his upcoming film and offered him a signing amount, stating on X that financial assistance extended through professional engagement is "dignity, not charity."
Rajpal Yadav is a gifted actor who has given years of unforgettable work to our industry. Sometimes life turns unfair, not because of talent, but because timing can be brutal. He will be part of my film, and I believe this is the moment for all of us..producers, directors,…
— sonu sood (@SonuSood) February 10, 2026
Guru Randhawa said he would transfer an advance amount for a planned collaboration, while Mika Singh urged colleagues to ensure tangible financial contributions rather than symbolic social media gestures.
Actor Gurmeet Choudhary appealed to producers and artists to stand united in support of a senior colleague.
It breaks my heart to see a senior, immensely talented artist like Rajpal Yadav ji going through such a painful phase. He has given us countless smiles, laughter, and unforgettable moments. Today, he needs us.
— GURMEET CHOUDHARY (@gurruchoudhary) February 10, 2026
As a fellow actor and as a human being, I am stepping forward to help…
Among political figures, Tej Pratap Yadav announced Rs 11 lakh in assistance. Music producer Rao Inderjeet Singh Yadav pledged Rs 1.1 crore, calling it an act of solidarity during a difficult phase.
Additionally, Rajpal Yadav's manager Goldie confirmed that Salman Khan, Ajay Devgn and director David Dhawan have reached out privately to offer support.
FWICE Steps In
The Federation of Western India Cine Employees (FWICE), representing 36 affiliated associations, released an official statement urging the film and television fraternity to extend moral and financial support.
The body emphasised that financial distress can affect professionals across the industry and assured transparency in consolidating any funds routed through it.
FWICE has assured transparency and stated that funds can either be sent directly to Rajpal Yadav or routed through the organisation.
What Lies Ahead
Rajpal Yadav's case has reopened conversations about financial risks in filmmaking and the fragile nature of independent film financing.
For now, the focus remains on the legal proceedings ahead and whether the combined support will help resolve the dues and secure his release.
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