Supreme Court accepts Rajpal Yadav’s plan to sell ancestral property, pay ₹2 crore in cheque bounce case

The Supreme Court on Wednesday accepted actor Rajpal Yadav’s proposal to sell his ancestral property to pay dues in a cheque bounce case linked to a loan taken for his 2012 film Ata Pata Laapata, The Bar and Bench reported on Wednesday.

A Bench comprising Chief Justice of India (CJI) Surya Kant, Justice Joymalya Bagchi and Justice V Mohana took note of Yadav’s arrangement to make an immediate payment of ₹2 crore.

Yadav produced demand drafts worth ₹1.15 crore, while another ₹85 lakh will be paid by a prospective buyer of his property by October 12.

"The petitioner has finally brought demand drafts in the sum of ₹1.15 crore, which shall be deposited with the Registry during the course of the day," the order said.

On the remaining ₹85 lakh, the court said the prospective buyer of Yadav's property was present in court and willing to make the payment.

"Anant Prakash Yadav is present in Court and he is willing to pay a sum of ₹85 lakh. He is willing to deposit the sum of ₹85 lakh by way of demand draft with the registry on Monday. On doing so, we will give him specific conditional relief on day-to-day terms," the order said.

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₹5 crore loan case

The case concerns ₹5 crore received by Yadav and his wife from Murli Projects for a film being produced by Yadav. After the film could not be completed within the agreed timelines, the parties entered into four agreements.

Under the third agreement, Yadav gave eight security cheques to Murli Projects. According to Yadav’s plea, a subsequent consent agreement dated April 21, 2013 provided for their return and issuance of four fresh cheques of ₹10 crore each. Yadav has alleged that Murli Projects instead presented seven of the eight cheques, which were dishonoured.

In May 2024, a sessions court convicted Yadav and sentenced him to six months' jail. The Delhi High Court later suspended the sentence after his counsel assured the court the dispute would be settled.

In February 2026, Yadav surrendered after the High Court rejected his plea for more time. He later secured an interim suspension of sentence after depositing ₹1.5 crore with the complainant. However, after failing to deposit the remaining amount, he was sentenced to three months in prison.

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Yadav’s counsel said the ancestral property was worth more than ₹30 crore and the buyer was ready to pay ₹85 lakh as advance.

"What will be the total sale consideration? Because the liability is much more than ₹2 crore," CJI Kant asked.

"The property value is worth more than ₹30 crore," the counsel replied.

The complainant's counsel agreed to give Yadav three months to pay the balance if ₹2 crore was paid immediately.

Justice Bagchi warned that the bench was inclined to enhance Yadav’s sentence from three months to two years.

"We are not satisfied with this. This conduct does not satisfy us...consider that we are neither impressed by your bona fides nor the merits of the case. We are only giving the accommodation in order to give equitable relief to the complainant," Justice Bagchi remarked.

The matter will be heard again after two days.