The Rajpal Yadav controversy dates back to a 2010 financial arrangement involving Murli Projects Pvt Ltd and Yadav’s directorial film Ata Pata Laapata.
According to the case record, Yadav received financial assistance of Rs 5 crore for the film. The complainant later alleged that seven cheques of Rs 1.05 crore each issued in 2013 towards settlement were dishonoured. The dispute subsequently resulted in multiple complaints under the cheque-bounce provisions of the Negotiable Instruments Act.
A 2012 agreement referred to repayment of around Rs 10.40 crore, according to the Delhi High Court record, with a schedule for repayment in instalments. The proceedings subsequently continued for years.
The Delhi High Court on July 10, 2026 upheld Yadav’s conviction in seven cheque-bounce cases and sentenced him to three months’ simple imprisonment in each case, with the sentences running concurrently. It also directed payment of Rs 1.05 crore to the complainant in each case, while amounts already deposited were to be adjusted.
The High Court had also criticised Yadav’s conduct and noted that he had received several opportunities to honour commitments connected to the dispute. The case reached the Supreme Court after Yadav challenged the High Court proceedings.