The businessman stated in an interview with News Pinch that Rajpal Yadav contacted him via MP Mithilesh Kumar Katheria, insisting that his film was almost finished and that “all will go to waste” if he did not obtain funds right away.
Madhav claimed that at first, he was hesitant because he had no experience managing a company of that size or working in finance. But then, he said, Rajpal’s wife messaged him for four or five days, putting him under emotional strain. He gave them a loan of ₹8 crore following an arrangement.
According to the merchant, Rajpal and his spouse, Radha, also provided a promissory note and a personal guarantee. He explained that it was only a loan and not an investment, pointing out that investments usually do not include postdated checks or personal guarantees.
Rajpal allegedly informed the businessman that he did not have the money because the film was still unfinished when the repayment date drew near. The businessman drafted a supplemental agreement in 2012 as a result. He continued by saying that the actor subsequently sent out fresh checks with updated dates, making the supplemental agreement three times in this way.
However, the businessman realized that Rajpal had to pay back the money before the movie’s premiere and that the bad press the movie was receiving was to be used as collateral when he watched Amitabh Bachchan introduce the music for Ata Pata Laapata. After that, they requested a stay on the movie. The businessman claims that Rajpal later gave him the assurance that reimbursement would only be feasible following the movie’s theatrical debut, so he had the stay order revoked. But the movie did not do well at the box office.
He went on to say, “He applied to the Delhi High Court in 2013 to see if Murli Projects could pay ₹10.40 crore to resolve the case. We thought that any money that came in was fine, so we agreed when the High Court requested us to do so because a sizable sum was due in accordance with the arrangement. After that, Rajpal sent in checks to the Delhi High Court, and we received them. However, all seven of those checks bounced.
“I even pleaded, please provide my money in one go and we will forget everything that happened,” the businessman added during the 2015 mediation. However, he said he was unable to pay it all at once. I even visited his home in Mumbai three or four times, and on two of those occasions, I sobbed uncontrollably since I had borrowed money from someone else as well. Additionally, we are giving the bank interest.
Everything regarding the debt case
When Rajpal borrowed ₹5 crore from Delhi-based Murali Projects Pvt Ltd in 2010 to finance his directing debut, Ata Pata Laapata (2012), the drama started. A legal crisis resulted from the actor’s failure to reimburse the money because the movie did not do well at the box office. The actor received a six-month prison sentence after seven checks made out to the complaint bounced. The Delhi High Court, however, on Monday postponed Rajpal’s punishment until March 18 in exchange for a ₹1.5 crore deposit with the complainant and a ₹1 lakh bail bond.
