Rajpal Yadav, wife convicted in cheque bounce case

Couple’s film company had taken a loan of ₹5 crore in 2010

A Delhi court has held Bollywood actor Rajpal Yadav, his wife Radha Rajpal Yadav and their film production company Messrs Naurang Godavari Limited guilty in a cheque bounce case.

The complainant in the matter, Messrs Murli Projects Pvt. Ltd., had extended an inter-corporate loan of ₹5 crore to Mr. Yadav for making a film titled ‘Ata Pata Lapata’ in 2010.

According to the complainant, Mr. Yadav had assured to pay ₹8 crore to the lender.

As the accused failed to fulfil the commitment, the repayment was rescheduled thrice. As per the last agreement, Mr. Yadav promised to the company to pay ₹11.10 crore, principal amount and the interest accrued on it.

Music rights dispute

Thereafter, certain disputes arose between the lender and the borrower pertaining to the music rights of the film, following which the former moved the Delhi High Court seeking a stay on the release of the film.

However, on an undertaking by the accused that cheques amounting to ₹7 crore would be honoured, the film was permitted to be released.

But when the complainant submitted the cheques to the bank for encashment, they were returned citing insufficient funds as the reason for not honouring the payment.

Mr. Yadav in his defence submitted before the court that the money advanced to him was an investment, not a loan as claimed by the complainant.

The money was to be repaid to the complainant company out of the proceeds of the film. As the film was not successful, he had no liability towards the complainant, he further submitted.

Wife ‘unaware’

The wife of the film actor in her defence said that she was not aware of the facts of the case as her husband was looking after the affairs of the company.

Holding all the accused guilty, Additional Chief Metropolitan Magistrate Amit Arora at the Karkardooma courts said, “All the accused, Messrs Shree Naurang Godavari Entertaiment Limited, Rajpal Navrang Yadav and Radha Rajpal Yadav are convicted under Section 138 of the Negotiable Instruments Act.’’

The sentencing of the accused persons will take place on April 23.