Bollywood actor Rajpal Yadav has been sent to jail for three months as he failed to repay a loan of INR50 million taken by his company to produce a film, reported Hindustan Times. Justice Rajiv Sahai Endlaw at Delhi High Court ordered the Chup Chup Ke star to be taken into custody and kept in Tihar Jail.
Delhi-based company Murli Projects filed a civil case against Yadav’s company Shree Naurang Godavari Entertainment for non-repayment of the loan. Yadav had borrowed the funds back in 2010 to make his Hindi debut directional film Ata Pata Laapata.
On August 8, 2012, Yadav agreed to pay INR11,10, 60,350 including the principal amount and interest. Meanwhile, a dispute arose between the two parties and the matter went to the high court where the Phir Hera Pheri actor gave an undertaking to repay INR7 crore.
However, all seven payments issued by Yadav were dishonoured due to “insufficient funds.” The actor, however, refuted all the charges in the court stating that he had not taken any loan from the complainant and rather, the sum of money was invested by the complainant in his film.
He also defended that the cheques were given as a security and hence, the money was a mere investment, not a loan. While convicting the actor, his company and his wife, the court said he cannot feign ignorance/repercussions of signing legal documents.
“There are three things. Either somebody invested INR5 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 stated.
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