Rajpal Yadav Debt Crisis: “I Cried Like a Child,” Says Lender as Dispute Escalates

New Delhi, February 18, 2026: The legal saga surrounding Bollywood actor Rajpal Yadav has taken a poignant and contentious turn. Following the actor’s recent release on interim bail from Tihar Jail, the businessman at the center of the dispute, Madhav Gopal Agrawal, has broken his silence, painting a picture of a decade-long financial struggle marked by emotional pleas and broken promises.

A Loan, Not an Investment

Agrawal, representing M/s Murali Projects Pvt Ltd, has firmly countered claims that the funds provided to Yadav were a business investment. In a recent statement, the lender clarified that the ₹5 crore handed over in 2010 was a strictly defined loan meant to help Yadav complete his directorial debut, Ata Pata Laapata.

“An investment does not come with a personal guarantee or post-dated cheques,” Agrawal stated. “This was a loan with explicit terms, backed by a personal guarantee from the actor and his wife.”

Agrawal revealed that he was initially hesitant to provide such a large sum. However, he claims he was moved to help after receiving heartfelt messages from Yadav’s wife, Radha Yadav, who implored him to save the project, stating that without the funds, “everything would go to waste.”

The “Crying” Confrontation

In one of the most striking revelations of the case, Agrawal recalled a desperate encounter at the actor’s Mumbai residence. He shared that he literally “cried like a child” in front of Yadav, explaining that the money he had lent was actually borrowed from others, leaving him under immense pressure to pay back his own creditors.

Despite these emotional appeals, the repayment never materialized. According to the lender, the agreement stipulated that repayment was independent of the film’s box office performance. When the movie flopped in 2012, the debt began to snowball with interest and penalties, eventually ballooning to approximately ₹9 crore.

The Current Legal Standing

The Delhi High Court has been stringent with the actor, previously noting his “untrustworthy” conduct regarding past settlement promises. However, a brief window of relief arrived this week:

• Interim Bail: On February 16, 2026, the court granted Yadav interim bail until March 18.
• The Condition: The bail was contingent on a fresh deposit of ₹1.5 crore, which the actor successfully furnished via Demand Draft.
• Personal Grounds: Yadav sought the temporary release to attend a family wedding scheduled for February 19.

Industry Support vs. Legal Reality

While the lender remains focused on recovery, the Bollywood fraternity has rallied behind the comedian. Reports suggest that actors like Sonu Sood, Salman Khan, and Ajay Devgn have offered various forms of support, whether financial or professional.

Yadav, upon walking out of Tihar Jail, expressed his gratitude to the court and his fans, maintaining that he intends to comply with all judicial directions. “If there are any allegations against me, I am available to answer,” he told reporters.

With the next hearing set for March 18, 2026, the focus remains on whether Yadav can finally settle the dues or if the “Chhote Pandit” of Bollywood will face further time behind bars. For Agrawal, the goal remains unchanged: “I am a businessman; I simply want my money back.”