Bollywood actor Rajpal Yadav is facing fresh financial trouble, with Central Bank of India moving towards the auction of a property in Shahjahanpur, Uttar Pradesh, over outstanding dues of more than Rs 16.61 crore. A notice has been pasted on the property, warning that it could be auctioned online on September 9, 2026, if the dues are not cleared within the stipulated period.
The development comes amid Yadav’s continuing legal and financial troubles linked to the film ‘Ata Pata Laapata’. Not long ago, the Delhi High Court had also sentenced him in cheque bounce cases connected with the film.
Rajpal Yadav’s ‘Yadav Bhavan’ faces auction
As part of the latest action, Shahjahanpur branch manager Anuj Verma, acting on instructions from Central Bank of India’s Mumbai branch, pasted an auction notice at Yadav’s residence, ‘Yadav Bhavan’, located in Banda in Powayan tehsil.
According to the bank’s figures, Yadav, his wife Radha Yadav and his mother Godavari Devi owe a total of Rs 16,61,64,638.
The recovery proceedings have been initiated following an order of the Debt Recovery Tribunal in Mumbai. The land and house situated on gata numbers 1410, 1411, 1412 and 1413 in Banda have been listed for auction.
The property has an estimated value of around Rs 3.19 crore. Those interested in participating in the e-auction will have to deposit an earnest money amount of Rs 31 lakh by September 7, 2026. The online bidding is scheduled for September 9.
How ‘Ata Pata Laapata’ loan led to financial trouble
Yadav’s financial troubles are linked to ‘Ata Pata Laapata’, his directorial debut. In 2005, he registered a company called ‘Navrang Godavari Entertainment Limited’ in the names of his parents.
Under this banner, Yadav took a Rs 5 crore loan from Central Bank of India’s Bandra-Kurla Complex branch in Mumbai to finance the film.
‘Ata Pata Laapata’ failed to achieve commercial success at the box office, following which the loan instalments could not be paid on time. Over the years, penalties, interest and other charges pushed the outstanding amount beyond Rs 16.61 crore.
At the time the loan was taken, properties in Shahjahanpur registered in the names of Yadav’s mother, Godavari Devi, and wife, Radha Yadav, were mortgaged as security. The bank is now proceeding with legal action against these properties.
Family says talks with bank are underway
Amid the auction proceedings, Yadav’s elder brother, Shripal Yadav, told the media that the matter was an old one and discussions with the bank management over repayment were continuing.
He expressed confidence that both sides would reach an agreement before the scheduled auction date and that the property would ultimately not have to be auctioned.
Cheque bounce cases and surrender at Tihar Jail
Apart from the property recovery proceedings, Yadav has also been fighting several cheque bounce cases connected with the same loan.
The Delhi High Court sentenced him to three months in prison in cases related to the bounced cheques. Following delays in complying with court conditions and making instalment payments, Yadav had to surrender at Tihar Jail in February 2026.
He was subsequently granted interim bail after spending 12 days in jail.
On the acting front, Yadav was recently seen in ‘Welcome to the Jungle’. He is also set to appear alongside Akshay Kumar and Saif Ali Khan in the upcoming film ‘Haiwaan’.
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