Bollywood actor and comedian Rajpal Yadav’s financial and legal troubles have deepened, with the Central Bank of India moving to auction his mortgaged properties over an outstanding loan of around Rs16.61 crore.

According to Indian media reports, the bank has pasted seizure notices on Yadav’s ancestral house and other mortgaged properties in Kundra village of Uttar Pradesh’s Shahjahanpur district.

The bank has set September 9, 2026 as the date for the e-auction if the outstanding amount is not cleared within the stipulated period.

The properties, mortgaged as security for the loan, include Yadav’s ancestral home in Shahjahanpur, another residential property, agricultural land and other assets. The combined reserve price for the properties has been set at around Rs3.19 crore.

Prospective bidders will have to deposit Rs31 lakh as earnest money by September 7 to participate in the auction.

Yadav’s elder brother, Shripal Yadav, said the matter was old and that discussions with the bank over repayment were ongoing.

“We hope the auction will not be necessary. The issue will be resolved soon,” he said.

Central Bank of India manager Anuj Verma also confirmed that a seizure notice had been pasted on the ancestral house in Kundra.

He said a similar notice had been issued around two years ago, after which the bank and Yadav reached an agreement over repayment.

The financial dispute is linked to Yadav’s directorial film “Ata Pata Laapata”.

Reports say he established Noorang Godawari Entertainment Limited in 2005 in the names of his parents and obtained a loan of around Rs5 crore from a Central Bank of India branch in Mumbai to produce the film.

The film failed to perform at the box office, making it difficult to repay the loan on time. Interest and other financial liabilities subsequently increased the outstanding amount to Rs16.61 crore, according to the bank.

This is not the first time the bank has taken action against Yadav. In August 2024, part of one of his properties in Shahjahanpur was sealed when the outstanding loan was reportedly around Rs11 crore.

Yadav is also facing legal proceedings in connection with cheque-bounce cases linked to the same debt.

Last month, the Delhi High Court sentenced him to three months in prison in seven cheque-bounce cases and ordered him to pay Rs1.05 crore in each case.

The court noted that Yadav had already deposited around Rs2 crore, which would be adjusted against the total dues.

The case dates back several years. A trial court convicted Yadav and his wife, Radha Yadav, in 2018, while a sessions court upheld the conviction in 2019.

The Delhi High Court temporarily suspended the sentence in 2024 and directed Yadav to pay around Rs9 crore.

After the payment was not made, he was ordered in February 2026 to surrender at Tihar Jail.

Yadav surrendered on February 5 and was granted interim bail around 12 days later.

Despite the financial and legal challenges, Yadav continues to work in films. He recently appeared in “Welcome to the Jungle” and is set to star alongside Akshay Kumar and Saif Ali Khan in Priyadarshan’s upcoming film “Haiwaan.”