Bollywood actor Rajpal Yadav is reportedly facing the auction of several properties after allegedly defaulting on a loan of more than ₹16.61 crore, according to media reports.
The Central Bank of India, Mumbai, has issued auction notices for two properties linked to the actor in Uttar Pradesh's Shahjahanpur district. The online auction is scheduled for September 9 as part of the bank's recovery proceedings.
According to reports, the two properties—one located in Shahjahanpur city and another in a nearby village—have a combined estimated value of around ₹3.19 crore.
Loan linked to film production
Reports said Yadav obtained the loan to finance his 2012 film Ata Pata Laapata, which he produced. Following the alleged failure to repay the loan, the bank reportedly took possession of the mortgaged properties and initiated recovery action.
The properties include agricultural land, a village house and another property in Shahjahanpur.
Reports further claimed that properties belonging to Yadav's wife, Radha Yadav, and his mother, Godavari Yadav, were also mortgaged as guarantor assets when the loan was secured.
In addition to the Shahjahanpur properties, recovery proceedings have reportedly begun for several of the actor's Mumbai properties.
Legal battle continues
Rajpal Yadav's financial and legal troubles date back to 2010, when he reportedly borrowed ₹5 crore from Delhi-based company Murli Projects to finance his directorial debut, Ata Pata Laapata.
Following the film's poor box office performance, the actor allegedly failed to repay the loan, leading to mounting interest, cheque-bounce cases and legal proceedings under India's Negotiable Instruments Act.
In July 2026, the Delhi High Court upheld Yadav's conviction in seven cheque-bounce cases. However, it reduced his sentence to three months' imprisonment while directing him to pay compensation after adjusting amounts already paid.
