- By Aditya Pratap Singh
- Wed, 11 Feb 2026 06:24 PM (IST)
- Source:JND
Rajpal Yadav Cheque Bounce Case: Actor Rajpal Yadav surrendered at Tihar Jail earlier last week after the Delhi High Court rejected his request seeking more time in a long-running cheque bounce and loan default case and ordered him to serve a six-month sentence. The decision came after the court found repeated violations of its directions.
Meanwhile, firms fraternity has come in support of Yadav, offering him work and money.
What is the Rajpal Yadav case?
The case, which began in 2010, involves actor Rajpal Yadav and unpaid dues related to his directorial debut film 'Ata Pata Laapata'. Rajpal took about Rs 5 crore loan from M/s Murali Projects Pvt Ltd to finance the film. The film failed miserably at the box office, and Yadav's inability to repay the loan, along with interest and penalties, caused the outstanding amount to rise to nearly Rs 9 crore.
The legal trouble, including criminal proceedings under the Negotiable Instruments Act, was triggered after multiple cheques issued by Yadav to settle the dues were bounced.
Meanwhile, many would be wondering if a cheque bounce activity can be a criminal offence, as most people consider mandate failures and check bounces to be minor administrative issues; the act is far more serious.
A single mandate failure or check bounce is sufficient to initiate a criminal case under Section 138 of the NI Act, provided a legal notice is served, and the issuer fails to pay within 15 days of receipt.
What is the penalty for a check bounce?
According to the rules, a check bounce can result in up to two years in prison, a fine of twice the check amount, or both. However, penalties begin even before legal troubles arise. When a check or NACH mandate (such as a SIP) fails, the bank charges a dishonor charge ranging from Rs 250 to Rs 750.
According to experts, if the check was for EMI, rent, or a credit card payment, the person or firm that collected it may charge you additional fees, such as a bounce fee, a late payment fee, or even interest. For instance, if three mandates fail, they can immediately be charged Rs 2,000-Rs 3,000 in bank and lender charges before any legal action is initiated.
What is Section 138
Under Section 138 of the Negotiable Instruments Act, 1881, dishonoring a check for insufficient funds is considered a criminal offense. The act can be punishable by up to two years in prison, a fine of twice the check amount, or both.
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This applies when a check is returned unpaid, and the drawer fails to make payment within 15 days of a notice sent within 30 days of the dishonor. Meanwhile, when there is a check about to bounce or a mandate is about to fail, one should always inform about the same in advance, because once a check bounces, it's easier to prove "intent to default" in court.