SC gives Rajpal Yadav two weeks to deposit ₹2 crore in cheque-bounce case

The Supreme Court on Tuesday granted actor Rajpal Yadav a final opportunity of two weeks to present a concrete proposal for clearing his outstanding dues to a private firm, and directed him to deposit ₹2 crore with the court's registry.

A Bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and V. Mohana extended Yadav's exemption from surrendering until October 5, when the matter will be heard again. The court observed that its earlier directions had not been complied with and that the actor's conduct did not inspire confidence, but said a last chance would still be given.

Appearing for Yadav, senior advocate P.S. Patwalia sought two weeks to place a concrete payment proposal before the court and said ₹2 crore would be deposited to demonstrate his bona fide. He submitted that Yadav has already spent four-and-a-half months in prison and that friends in the entertainment industry had to step in to secure his release.

Senior advocate Ajit Sinha, appearing for the complainant, M/s Murali Projects Private Limited, said the firm's concern was the money, as Yadav had not honoured his commitments.

The dispute dates back to 2010, when the complainant says financial assistance of ₹5 crore was extended to Yadav for a film. According to the firm, seven cheques of ₹1.05 crore each were tendered in 2013 towards settlement, but were dishonoured. The complainant has also cited a 2012 agreement under which Yadav, his wife and their company are said to have agreed to repay around ₹11 crore, including interest.

The case reached the Supreme Court after the Delhi High Court on July 10 upheld Yadav's conviction in multiple cheque-bounce matters and sentenced him to three months' imprisonment. The High Court declined to condone a delay of 1,894 days — more than five years — in filing petitions against the conviction, and directed Yadav to pay over ₹1 crore to the complainant in each of the seven complaints.

In its 108-page verdict, the High Court noted that Yadav had repeatedly failed to honour undertakings on payment, and that he had refused to make any further payment despite the court's efforts to facilitate a settlement. It rejected his plea for release on probation and found no infirmity in the lower court's sentence. Of the fine amount, ₹1.04 crore was ordered to be paid to the complainant and ₹25,000 to the State in each case.

The High Court also directed Yadav's wife, Radha Rajpal Yadav, to pay around ₹5.5 lakh as fine to the complainant in each case, with simple imprisonment of three months in default. It clarified that roughly ₹2 crore already paid by the actor would be adjusted, and kept the sentence in abeyance for two months to allow him to approach the appellate court.

The High Court's order arose from revision petitions filed by Yadav and his wife against a 2019 sessions court decision that had upheld their conviction by a magisterial court in April 2018. The magisterial court had sentenced the actor to six months' imprisonment, later reduced to three months.

On September 8, the Supreme Court issued notice on Yadav's plea and said that, subject to the deposit of ₹5 crore with its registry, he would be exempt from surrendering.