Actor Rajpal Yadav, who is well known for making people laugh in Bollywood for nearly three decades, is now going through a very difficult phase in his real life. On February 5, 2026, he surrendered at Delhi’s Tihar Jail after the Delhi High Court ordered him to serve a six-month prison sentence. The case, which has been ongoing for nearly 16 years, has sent shockwaves through the industry and raised serious questions about financial mismanagement and the harsh realities of independent film funding.
But the question on everyone’s mind remains: How could an actor with a reported net worth of ₹80 crore fail to repay a ₹9 crore debt?
The Beginning: When a Passion Project Took a Wrong Turn
The problem started in 2010 when Rajpal Yadav, at the peak of his career, decided to direct his film Ata Pata Laapata.
To make the film, he and his wife, Radha Yadav, took ₹5 crore from Delhi businessman M.G. Agarwal, the owner of Murli Projects. The film was released in 2012 but failed badly at the box office, earning only 38 lakhs. After this loss, Rajpal began facing serious financial problems, which later led to his imprisonment.
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However, Rajpal Yadav says it was not a loan but an investment. According to him, Agarwal agreed to invest ₹5 crore, and in return, Rajpal would launch Agarwal’s grandson as the lead actor. But Rajpal later cast himself in the lead role, which reportedly damaged their relationship. Agarwal then went to court and treated the money as a commercial loan, starting a long legal battle.
Why ₹5 Crore Became ₹9 Crore?
Many fans are wondering why a successful actor could not repay a ₹5 crore debt even after 16 years. The reason is linked to the complex rules and technical details of financial law:
- Compounding Interest: Since the money was borrowed from a private person (P2P) and not a bank, the interest rate was much higher. Over more than 15 years, the unpaid loan amount, interest, and legal penalties together increased the total debt to nearly ₹9 crore.
- Section 138 of the NI Act: 7 cheques given by the actor bounced, after which Agarwal filed multiple cases under Section 138 of the Negotiable Instruments Act. In India, cheque bouncing is treated as a criminal offense, not just a civil dispute.
- Delayed Settlements: Between 2018 and 2025, Rajpal Yadav paid back some parts of the loan, including ₹75 lakh in 2025. However, the growing interest kept increasing the total amount he owed.
- The Original Sum: ₹5 Crore (2010)
- The Current Liability: ₹9 Crore (2026)
- The Factor: 16 years of compounding interest, legal penalties, and 7 separate cases under the Negotiable Instruments Act (each worth ₹1.35 crore).
Net Worth vs. Liquidity: Wealth on Paper, Not in Hand
Rajpal Yadav’s net worth is estimated to be around ₹80 crore, which looks impressive on paper. However, most of his money is tied up in properties and assets, and he does not have enough ready cash.
- Seized Property: The Central Bank of India sealed his ancestral property in Shahjahanpur due to an ₹11 crore default.
- Stay Order: His Mumbai flat and 5,000 sq. ft. house in Madhya Pradesh and agricultural land are under legal stay orders, preventing him from selling them to repay the debt.
- No Bank Support: Due to a criminal record related to cheque bounce cases, he is reportedly unable to secure fresh loans from banks in India, even against his existing properties.
Even though Rajpal earned around ₹8 crore in the past two years from movies like Bhool Bhulaiyaa 3 and Chandu Champion, most of that money was used to repay other loans. Reports say he borrowed money from different people to finish his ₹20 crore film after it went over budget. Because of this, he kept taking new loans to pay old ones, staying trapped in a cycle of debt.
Why the Court Refused to Grant Relief?
In February 2026, the Delhi High Court, under Justice Swarana Kanta Sharma, took a strict stand on the case. The court said that the actor had already been given more than 24 chances to clear his pending dues.
The court clearly stated that being an actor does not give anyone special treatment. It said, “The law cannot create special circumstances for you just because you are an actor, The law is the law. You have gone to jail because you did not honour your own commitment,” stressing that celebrities must also follow legal responsibilities.
Even though Yadav’s lawyers offered a demand draft of ₹50 lakh and requested for more time, the court rejected the request on February 4 and ordered him to surrender immediately.
Current Status: Bail Hearing Update
As of February 13, 2026, Rajpal Yadav is still in custody. A bail hearing took place on February 12, where his lawyers mentioned his niece’s wedding on February 19 and offered to deposit security money. However, the court postponed the decision and scheduled the next hearing for Monday, February 16, 2026, asking the complainant to submit a reply.
Inside the Crisis: The Manager Reveals the Family’s Struggle
Rajpal’s manager, Goldie Jain, revealed that while the actor is displaying “absolute grit,” he is emotionally shattered. Before surrendering, Rajpal reportedly made an emotional appeal, saying, “Sir, kya karoon? Mere paas paise nahi hain. Yahan hum sab akele hain.” (Sir, what should I do? I have no money. We are all alone here.)
The situation has become even more painful as the actor’s niece is set to get married on February 19. The family is praying and hoping that the bail hearing on Monday, February 16, will allow him to attend the wedding.
Industry Support
In a rare moment of unity, the film industry has now stepped forward:
- Sonu Sood was among the first to call for support and has reportedly signed Rajpal for his upcoming project, along with giving him an advance payment.
- Salman Khan, Ajay Devgn, and Varun Dhawan have reportedly contacted the family and offered support to help clear the remaining ₹9 crore debt.
- Rao Inderjeet Yadav (Music Producer) has reportedly provided financial help of ₹1.11 crore.
- Mika Singh has also promised financial help to support the actor’s release.
The verdict
Rajpal Yadav’s story clearly shows that in matters of money and law, keeping your promise is very important. Once trust is broken in the eyes of the law, even a ₹80 crore empire cannot protect you from going to jail.
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