E-Paper
What is a cheque bounce and when does it land you in jail? What happened to Rajpal Yadav
Actor Rajpal Yadav surrendered to Tihar Jail after the Delhi High Court denied his request for an extension related to cheque-bounce convictions.
Actor Rajpal Yadav on Thursday surrendered before Tihar Jail authorities after the Delhi High Court refused to extend the deadline in connection to his conviction in cheque-bounce cases.
The counsel for Yadav, who was on February 2 directed to surrender by 4 pm on Wednesday, had told the court that the actor had arranged a sum of ₹50 lakh and sought one more week to make the payment, news agency PTI reported.
Justice Swarana Kanta Sharma rejected Yadav's application seeking extension of time to surrender, saying there was no ground to grant him the relief.
What is cheque bounce?
A cheque bounces when the required amount of money exceeds that in the bank account.
According to ClearTax, a cheque bounce is an offence under Section 138 of the Negotiable Instruments Act, 1881 with the punishment being a fine up to twice the cheque amount, imprisonment of up to two years, or both.
A cheque bounce notice demands repayment of the exact cheque amount within 15 days.
How did cheque bounce lead Rajpal Yadav to jail?
Trouble began to spiral in 2010, when the popular Bollywood actor Rajpal Yadav stepped behind the camera for his directorial debut, Ata Pata Laapata, reported Gulf News.
To fund the project, he borrowed approximately ₹5 crore from Murali Projects Pvt Ltd.
After the film failed to make a hit at the Box Office, repayment became difficult, especially with limited returns.
Over time, interest, penalties and delays pushed the outstanding dues to nearly ₹9 crore. Yadav issued multiple cheques to clear the amount, which quickly bounced, finally leading the actor to criminal proceedings.
When the Delhi High Court took cognizance into the matter, it granted him multiple extensions to repay the amount in installments. Although he made partial payments and repeatedly assured compliance, he failed to meet agreed timelines.
The court finally rejected Yadav's final attempt to avoid imprisonment and directed that he must surrender to the jail authorities before any further hearing could be held.
According to PTI, on February 4, the court declined any further extension of deadline and stated that since the actor had failed to comply with the surrender order, he would be heard only after he hands himself over to the jail authorities.
