The actor, known for his comedy hits, finally received temporary relief following support from several members of the film industry.
The case has been ongoing since 2010. Yadav and his wife had taken a loan of nearly Rs5,00,00,000 for their directed film Ata Pata Lapata.
When the movie failed at the box office, repaying the loan became difficult. Several checks issued to the lending company, Murli Projects Private Limited, bounced.
Legal proceedings were launched under the Negotiable Instruments Act, and with interest and penalties, the total dues reached approximately Rs9,00,00,000.
Despite a settlement agreement, Yadav allegedly failed to make the agreed payments. In early February, the court ordered him to surrender at Tihar Jail.
Last week, a Delhi court had rejected his bail plea due to failure in repayment. However, on February 16, he was granted bail under certain conditions, giving him temporary relief from jail.
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Rajpal Yadav has been a key figure in Bollywood, delivering numerous blockbuster comedy films. His release comes as a relief to fans and highlights the ongoing challenges actors face with financial disputes.