Rajpal Yadav in jail over money dispute
Rajpal Yadav has been sentenced to three months of jail by the Delhi High Court due to a non-repayment of funds borrowed in 2010.
Murli Projects, a Delhi-based company, filed the case against Shree Naurang Godavari Entertainment (owned by Yadav) for failing to repay a loan worth Rs. 5 crore, The New Indian Express reported. Yadav had borrowed the money for his directorial debut ‘Ata Pata Laapata’. According to an agreement between the parties signed on 8th August, 2012, Yadav agreed to repay Rs. 11.10 crore, including principal amount and interest. The parties eventually went to High Court after a dispute arose, which resulted in Yadav undertaking to repay Rs. 7 crore. However, none of his seven payments were honoured due to insufficient funds.
According to Yadav, the money taken from Murli Projects was not a loan, but an investment by the company in his film. The cheques issued were for security and not a repayment of the funds owed. “There are three things. Either somebody invested INR 5 crore or somebody loaned this much money. The third thing is that Rajpal Yadav was involved in a fraud. Only one of these three things can be right. Please let me know which of these I am getting punished for.”, Yadav said.
