SC gives Rajpal Yadav final two-week chance to pay Rs 2 crore in cheque-bounce cases

The Supreme Court on Tuesday gave actor Rajpal Yadav a final two-week opportunity to come up with a concrete proposal to settle his outstanding dues to a private firm and directed him to deposit Rs 2 crore with the court registry.

A bench headed by Chief Justice Surya Kant and comprising Justices Joymalya Bagchi and V Mohana extended Yadav's exemption from surrendering until 5 October, when the matter will be heard again.

The case relates to multiple cheque-bounce complaints filed by M/s Murali Projects Pvt Ltd. The firm alleged that Yadav had received Rs 5 crore in financial assistance in 2010 for a film and had issued seven cheques of Rs 1.05 crore each in 2013 as part of a settlement. The cheques were allegedly dishonoured.

According to the complainant, an agreement reached in 2012 required Yadav, his wife and their company to repay around Rs 11 crore, including interest.

During Tuesday's hearing, the bench criticised Yadav's conduct, saying previous court orders had not been complied with.

“He is perfect at doing drama but this court. Earlier orders of the court have not been complied with,” the bench said. It added that Yadav's conduct did not inspire confidence but decided to grant him a final opportunity.

Senior advocate P S Patwalia, appearing for Yadav, sought two weeks to formulate a concrete payment proposal and said the actor would deposit Rs 2 crore to demonstrate his bona fides.

Patwalia also said Yadav had spent four-and-a-half months in prison and that his friends in the entertainment industry would help him meet his financial obligations.

Senior advocate Ajit Sinha, appearing for Murali Projects, said the complainant was concerned with recovering the money, as Yadav had failed to honour previous commitments.

On 8 September, the Supreme Court had issued notice on Yadav's plea and said his surrender could be deferred subject to a Rs 5 crore deposit with the registry.

The Delhi High Court had on 10 July upheld Yadav's conviction in the cheque-bounce cases and sentenced him to three months in prison. It also refused to condone an “extraordinary” delay of 1,894 days, or more than five years, in filing petitions challenging his conviction.

The High Court directed Yadav to pay more than Rs 1 crore to the complainant in each of the seven cases. It said around Rs 2 crore already paid by the actor would be adjusted and kept his sentence in abeyance for two months to allow him to approach the appellate court.

In its 108-page verdict, the High Court said Yadav had repeatedly failed to honour undertakings to make payments to Murali Projects. It rejected his plea for release on probation and upheld the lower court's sentence.

The cases stem from a 2019 sessions court judgment upholding Yadav's conviction by a magistrate in April 2018. The magistrate had initially sentenced him to six months in prison, later reduced to three months.

The High Court also directed Yadav's wife, Radha Rajpal Yadav, to pay around Rs 5.5 lakh to the complainant in each case.