The Supreme Court on Monday pulled up actor Rajpal Yadav for failing to comply with its earlier direction to deposit money in connection with a long-running cheque bounce case involving private firm M/s Murli Projects Pvt Ltd.
A Bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice V. Mohan is hearing the matter, which relates to seven cheque bounce cases linked to the company.
The Delhi High Court had earlier upheld Rajpal Yadav’s conviction and sentenced him to three months’ imprisonment in each case.
During the hearing, the Chief Justice asked Yadav how many projects he was currently working on.
Rajpal Yadav said, “I have done 250 films over the last 16 years. I invested Rs 5 crore in this film and ended up losing Rs 250 crore.”
CJI Surya Kant replied, “Make a good film. We have several advocates here who are good actors as well.”
There was another exchange in court where the CJI urged Rajpal Yadav to make a good film, saying that it would help rebuild his image.
The actor said he had suffered heavy losses from Ata Pata Lapata and claimed that he had lost around Rs 17 crore on the project. He added that the total investment in the film was around Rs 22 crore and that it failed to generate any meaningful returns.
Yadav also told the court that he was prepared to comply with whatever direction was issued.
His lawyer informed the Bench that both the buyer and seller of a property belonging to Yadav were present in court and that the proceeds could be used towards payment of the outstanding amount.
The counsel said Rs 1.15 crore had already been arranged and that a buyer had also been identified for Yadav’s ancestral property.
He further told the court that the buyer was willing to advance Rs 85 lakh, taking the total amount available to Rs 2 crore. However, registration of the property was being deferred due to the ongoing Pitru Paksha period, with the parties preferring to complete the transaction after Navratri began.
Supreme Court Gives Final Opportunity
At an earlier hearing, the Supreme Court had expressed strong displeasure over Yadav’s failure to deposit the amount despite repeated directions.
The Chief Justice observed that the court had so far shown leniency mainly to ensure that the complainant recovered at least part of the money due. Otherwise, the Bench indicated that it was inclined to dismiss Yadav’s appeal against his conviction.
The court had given the actor one day to deposit Rs 2 crore and made it clear that this would be his final opportunity.
Yadav’s counsel subsequently informed the court that Rs 1.15 crore had been arranged. The Supreme Court directed that this amount be deposited immediately and ordered that the remaining Rs 85 lakh be transferred through RTGS by Monday.
What Is the Case About?
The dispute dates back to 2010 and relates to financial assistance of Rs 5 crore that Rajpal Yadav allegedly received from M/s Murali Projects Pvt Ltd for a film project.
According to the complainant, Yadav later issued seven cheques of Rs 1.05 crore each towards settlement of the amount, but all of them were dishonoured.
The complainant also alleged that under a 2012 agreement, Yadav, his wife Radha and their company had agreed to repay around Rs 11 crore, including interest.
The dispute has continued for several years.
On September 15, the Supreme Court extended Yadav’s exemption from surrendering until October 5 and gave him what it described as a final opportunity to submit a concrete payment proposal.
The Bench had also expressed dissatisfaction with his conduct, noting that earlier court orders had not been complied with.
Senior advocate P. S. Patwalia, appearing for Yadav, sought two weeks to work out a clear repayment plan and told the court that the actor would deposit Rs 2 crore to demonstrate his bona fides.
Patwalia also said Yadav had already spent four-and-a-half months in prison and that friends from the entertainment industry had helped him financially.
Counsel appearing for M/s Murali Projects Pvt Ltd said the complainant’s primary concern was recovery of the outstanding amount, as Yadav had allegedly failed to honour earlier commitments.
Delhi High Court Conviction
The Supreme Court had on September 8 issued notice on Yadav’s plea and said that, subject to a deposit of Rs 5 crore with its registry, he would be exempted from surrendering.
Earlier, on July 10, the Delhi High Court upheld Yadav’s conviction in multiple cheque bounce cases and sentenced him to three months in prison.
The High Court also refused to condone a delay of 1,894 days — more than five years — in filing petitions challenging the conviction.
It directed Yadav to pay more than Rs 1 crore to the complainant in each of the seven cases, while allowing around Rs 2 crore already paid by him to be adjusted against the dues.
The sentence was kept in abeyance for two months to allow him to approach a higher court.
The High Court also directed Yadav’s wife to pay a fine of around Rs 5.5 lakh to the complainant in each case, failing which she would have to undergo three months of simple imprisonment.
The High Court’s verdict came on revision petitions filed by Yadav and his wife against a 2019 sessions court order that had upheld their conviction by a magistrate in April 2018.
The magistrate had originally sentenced Yadav to six months in prison, which was later reduced to three months.