{
  "type": "article",
  "title": "Central Bank of India Moves to E-Auction Rajpal Yadav's Ancestral Property Over ₹16.61 Crore Debt",
  "summary": "Central Bank of India has issued an e-auction notice for Bollywood actor Rajpal Yadav's ancestral house and land in Shahjahanpur, UP, to recover ₹16.61 crore in unpaid loans, setting the bidding date for 9 September 2026.",
  "content": "Renowned Bollywood comedy actor Rajpal Yadav faces a severe financial and legal storm as Central Bank of India has initiated formal recovery proceedings against his ancestral real estate in Uttar Pradesh's Shahjahanpur district. The public sector lender attached an official foreclosure notice to his family residence following prolonged default on an overdue commercial loan that has swelled beyond ₹16.61 crore. Bank authorities have warned that unless the outstanding liability is cleared in full within the stipulated timeframe, the mortgaged land and residential premises will be sold through an online public auction scheduled for 9 September 2026. This development adds to his mounting troubles shortly after his brief imprisonment in connection with linked check bounce litigation.\n\nAuction Notice Pasted at 'Yadav Bhawan' in Banda; Reserve Price Set at ₹3.19 Crore\nAccording to official enforcement documentation, Anuj Verma, the branch manager of Shahjahanpur acting under directive instructions from the Bandra-Kurla Complex (BKC) Mumbai branch of Central Bank of India, affixed the seizure notice on the actor's ancestral residence titled 'Yadav Bhawan' located in Banda, Puwayan tehsil. Institutional records disclose that the collective unpaid liability standing against Rajpal Yadav, his wife Radha Yadav, and his mother Godavari Devi amounts to precisely ₹16,61,64,638. The recovery drive was launched following explicit orders issued by the Debt Recovery Tribunal in Mumbai.\n\nThe properties put up for bidding comprise residential and land holdings mapped under Gata numbers 1410, 1411, 1412, and 1413 in the Banda region. Financial evaluators have pegged the estimated market valuation of these immovable assets at approximately ₹3,19,26,000. Prospective buyers participating in the e-auction are required to deposit an Earnest Money Deposit (EMD) of ₹31 lakh by 7 September 2026. Online bidding for the parcels will subsequently take place on the designated portal on 9 September 2026.\n\nRoot Cause: ₹5 Crore Loan Taken in 2005 for 'Ata Pata Laapata'\nThe origins of this deep financial distress trace back nineteen years to 2005. At that time, Rajpal Yadav registered an independent production company named 'Navrang Godavari Entertainment Limited' in honor of his parents. Under this banner, he produced and directed his directorial debut film titled 'Ata Pata Laapata'. To finance the production and release expenses of the project, he secured a principal loan of ₹5 crore from Central Bank of India's Bandra-Kurla Complex branch in Mumbai.\n\nHowever, the movie suffered a major commercial failure at the theatrical box office, leaving the production house incapable of meeting its scheduled monthly installment obligations. Over nearly two decades, non-payment triggered massive penalty charges, compounding interest, and statutory processing fees, inflating the original ₹5 crore debt to more than ₹16.61 crore. When borrowing the initial sum, Yadav had offered the ancestral Shahjahanpur land titles owned by his mother Godavari Devi and wife Radha Yadav as collateral security. Consequently, the bank has exercised its legal rights to attach and liquidate these pledged properties.\n\nFamily Seeks Resolution Ahead of Bidding Deadline\nAmid the formal attachment action, the actor's elder brother Shripal Yadav addressed the situation publicly, explaining to media representatives that the loan default is an old issue rather than a sudden development. He stated that constructive dialogue remains ongoing between the family and senior executives at the bank's management level.\n\nShripal Yadav expressed strong confidence that an amicable out-of-court settlement or one-time settlement plan would be finalized prior to the 9 September e-auction date, thereby preventing the public sale of their ancestral home and property.\n\nCheck Bounce Sentence and Tihar Jail Surrender\nApart from the property attachment process, Rajpal Yadav has been embroiled in extended legal battles concerning check bounce complaints linked to the same financing arrangement. The Delhi High Court had previously sentenced the actor to three months of imprisonment in connection with these check bounce cases after delays in meeting scheduled repayment commitments.\n\nOwing to non-compliance with court-mandated payment schedules, he surrendered at Tihar Jail in February 2026 to serve his term. He was granted interim bail after spending 12 days in custody. On his professional front, Rajpal Yadav continues his acting career, having recently featured in the ensemble comedy 'Welcome to the Jungle'. He is also set to feature in the upcoming movie 'Haiwaan' alongside co-stars Akshay Kumar and Saif Ali Khan.\n\nWhat this means for you\nReader Impact:\n\n• Across India: Highlights the critical importance of financial planning and understanding legal liabilities when leveraging ancestral property or family guarantees for commercial loans.\n• In Shahjahanpur: Draws local real estate focus toward the public e-auction process for the Banda property ahead of the 7 September EMD submission deadline.\n\nQuestions & Answers\n\n1. Why is Rajpal Yadav's ancestral property being auctioned?\nCentral Bank of India initiated auction proceedings due to non-payment of a 2005 commercial loan that has grown to over ₹16.61 crore with interest and penalties.\n\n2. Which specific property is included in the e-auction?\nThe property includes his residence 'Yadav Bhawan' and land plots under Gata numbers 1410, 1411, 1412, and 1413 in Banda, Shahjahanpur district, UP.\n\n3. When is the e-auction taking place and what is the EMD amount?\nThe online auction is scheduled for 9 September 2026, with an Earnest Money Deposit (EMD) of ₹31 lakh required by 7 September 2026.\n\n4. Which film caused this financial crisis for Rajpal Yadav?\nThe loan was originally taken to produce and direct his 2005 movie 'Ata Pata Laapata', which failed at the box office.\n\n5. Was Rajpal Yadav imprisoned in relation to this case?\nYes, following a Delhi High Court sentence in a connected check bounce case, he surrendered at Tihar Jail in February 2026 and obtained interim bail after 12 days.",
  "url": "https://trendkia.com/en/bollywood/shahjahanpur-men-rajpal-yadav-ki-pushtaini-snpatti-para-bainka-ka-shiknja-16-61-karora-rupaye-bakaya-men-9-sitnbara-ko-i-nilami-14466",
  "category": "Bollywood",
  "publishedAt": "2026-08-06",
  "tags": [
    "Rajpal Yadav",
    "Central Bank of India",
    "E Auction",
    "Shahjahanpur",
    "Loan Default",
    "Ata Pata Laapata",
    "Tihar Jail"
  ],
  "language": "en",
  "site": "TrendKia"
}