Rajpal Yadav faces property auction proceedings over bank loan default

Bollywood actor Rajpal Yadav is confronting serious financial and legal setbacks as the Central Bank of India initiates property attachment and auction proceedings against his ancestral real estate in Uttar Pradesh to recover an unpaid loan balance of ₹16.61 crore.

How the ₹5 Crore Loan Escalated to ₹16.61 Crore

In 2010, Rajpal Yadav established Navrang Godavari Entertainment Limited and secured a ₹5 crore loan from the Central Bank of India’s Mumbai branch to fund Ata Pata Laapata.

Following the film’s commercial failure at the box office, loan repayments lapsed. Over time, compounded interest and penalties pushed the total outstanding debt to ₹16.61 crore.

To secure the original financing, Yadav pledged multiple family properties, listing his wife, Radha Yadav, and mother, Godavari Yadav, as guarantors.

Family Response and Bank Statements

Bank officials placed physical attachment notices on Yadav’s ancestral home in Kundra village. However, the actor’s family maintains that negotiations remain active:

Family Statement: Yadav’s elder brother, Shripal Yadav, publicly stated that discussions with bank officials are ongoing to resolve the repayment terms before the September deadline.

Bank Confirmation: Local bank management confirmed that similar recovery steps were initiated in prior years, but legal attachment resumed after subsequent payment agreements were not fulfilled.

Ongoing Legal Challenges

The property auction proceedings follow closely after the Delhi High Court sentenced Yadav to three months of imprisonment across seven concurrent cheque bounce cases tied to the same film production debt. While Yadav previously surrendered at Tihar Jail before receiving interim bail, the combined pressure of court mandates and asset recovery highlights ongoing financial challenges for the veteran comedy actor.