New Delhi: In a rare media interaction, businessman Madhav Agarwal opened up about his ₹5 crore loan to Bollywood actor Rajpal Yadav. Agarwal, whose company Murli Projects Pvt. Ltd. had financed Rajpal for the 2010 film Ata Pata Lapata, described the emotional rollercoaster he endured in the process. Recently, the Delhi High Court granted interim bail to Rajpal Yadav, making this the first time Agarwal publicly shared his perspective on the long-standing loan dispute.
Agarwal revealed that he was introduced to Rajpal Yadav through MP Mithilesh Kumar Katheria. At the time, Rajpal insisted that the film was near completion and urgently required funding. Fearing project delays, Agarwal initially hesitated but was persuaded by repeated emotional appeals from Rajpal’s wife, Radha Yadav. “Her messages and appeals moved me emotionally. I agreed to help, even though I had borrowed money myself to lend to him,” Agarwal said, visibly emotional.
The loan agreement clearly stated that the repayment was mandatory, irrespective of the film’s success, censor issues, or other external problems. Rajpal also provided a personal guarantee, underlining that this was a loan—not an investment.
Despite multiple agreements and supplementary arrangements, Rajpal Yadav repeatedly failed to honor repayment commitments. Agarwal recounted that he personally visited Rajpal’s home, pleading for repayment like a desperate creditor, only to see his trust repeatedly broken. After the film’s music launch by Amitabh Bachchan, Agarwal realized the terms of the agreement were not met. He approached the court to halt the film’s release due to unpaid dues. Eventually, a settlement of ₹10.40 crore was reached, but all deposited cheques bounced, pushing the matter further into legal territory.
“I went there crying like a child. I begged and promised to create new agreements, but every time the cheque bounced. It was disheartening,” Agarwal said.
While the legal process unfolds, Madhav Agarwal emphasized that his concern has never been about Rajpal Yadav’s fame or reputation, but strictly about recovering his money. “His jail term doesn’t increase my respect for him. I am a businessman; I just want my money back. The court process is ongoing, and we will follow it diligently,” he added.
Madhav Agarwal lent ₹5 crore to Rajpal Yadav in 2010 for Ata Pata Lapata. The loan was given after an emotional appeal by Rajpal’s wife, Radha Yadav. The agreement included personal guarantees and strict repayment terms. Multiple supplementary agreements were made due to delays, yet payments failed. A court settlement of ₹10.40 crore was reached, but cheques bounced, escalating the dispute. Delhi High Court recently granted Rajpal Yadav interim bail.
This case sheds light on the financial vulnerabilities in Bollywood, where trust and informal agreements can often lead to complex legal battles. Madhav Agarwal’s emotional recount emphasizes the human side of lending, where a businessman’s hard-earned money and personal integrity are at stake.
The Rajpal Yadav loan dispute is a classic case of financial trust, emotional persuasion, and legal entanglements. Businessman Madhav Agarwal’s first media statement highlights personal struggles, repeated broken promises, and the court interventions that followed. For Bollywood fans and financial observers alike, this story offers a rare behind-the-scenes look at how money, fame, and human emotion collide.