Bollywood actor Rajpal Yadav is reportedly facing fresh financial and legal troubles after the Central Bank of India initiated proceedings to auction several of his properties over an alleged loan default exceeding ₹16.61 crore. The development has once again placed the veteran actor in the spotlight, with reports suggesting that both his properties in Uttar Pradesh and Mumbai are now part of the recovery process.
According to Indian media reports, the Central Bank of India, Mumbai, has issued auction notices for two properties linked to Rajpal Yadav in Uttar Pradesh’s Shahjahanpur district. The online auction has been scheduled for September 9 as the bank attempts to recover outstanding dues from the actor.
Reports indicate that the two Shahjahanpur properties include one located within the city and another situated in a nearby village. Together, these properties are estimated to be worth approximately ₹3.19 crore. The assets reportedly include agricultural land, a residential house in the village, and another property within Shahjahanpur.
The recovery action is said to stem from a loan Rajpal Yadav allegedly obtained to finance his 2012 film Ata Pata Laapata, a project that marked his debut as a producer. According to reports, the actor secured the loan with the intention of funding the film’s production. However, after the movie failed to perform at the box office, he allegedly struggled to repay the borrowed amount.
Following the reported default, the Central Bank of India allegedly took possession of the mortgaged properties and began legal proceedings to recover the outstanding loan. Media reports further claim that the recovery process has now reached the stage where the bank plans to auction the properties through an online bidding process.
The reports also state that several family-owned assets were pledged as security when the loan was taken. These reportedly include properties belonging to Rajpal Yadav’s wife, Radha Yadav, and his mother, Godavari Yadav, who were named as guarantors during the loan process. Their properties are also said to be part of the mortgaged assets under the bank’s recovery proceedings.
Apart from the Shahjahanpur properties, reports suggest that recovery action has also been initiated against several of Rajpal Yadav’s properties in Mumbai. However, complete details regarding these Mumbai assets have not yet been made public.
Rajpal Yadav’s legal challenges reportedly date back more than a decade. According to media reports, he borrowed around ₹5 crore in 2010 from Delhi-based company Murli Projects to finance Ata Pata Laapata. The film, despite generating considerable expectations, reportedly underperformed commercially, making it difficult for the actor to repay the borrowed amount.
As the unpaid loan accumulated interest over the years, the matter reportedly escalated into multiple legal disputes. These included cheque-bounce cases filed under India’s Negotiable Instruments Act, which eventually reached the higher courts.
In July 2026, the Delhi High Court reportedly upheld Rajpal Yadav’s conviction in seven separate cheque-bounce cases connected to the loan. However, while maintaining the conviction, the court reduced his sentence to three months’ imprisonment. It also directed him to pay compensation after adjusting amounts that had already been deposited during the legal proceedings.
Despite these developments, Rajpal Yadav remains one of Bollywood’s most recognizable character actors. Over the years, he has built a successful career through memorable performances in comedy and supporting roles across dozens of Hindi films. His comic timing and distinctive screen presence have earned him a loyal fan following, making the latest reports about his financial difficulties particularly surprising for many fans.
As of now, neither Rajpal Yadav nor his representatives have publicly responded to the latest reports regarding the proposed auction or the ongoing recovery proceedings. The scheduled auction on September 9 is expected to determine the next phase of the bank’s efforts to recover the alleged outstanding loan amount.
Also read: Rajpal Yadav Seeks New Film Opportunities Following Court Bail
