Palash Muchhal accused of cheating Sangli-based financier of Rs 40 Lakh, police begin probe

Singer and filmmaker Palash Muchhal has landed in legal trouble after a Sangli-based man accused him of cheating and financial fraud. 

A formal complaint alleging a loss of Rs 40 lakh has been filed with the Sangli district police, who have now initiated a preliminary investigation into the matter.

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Complaint Filed Over Alleged Film Investment Fraud

The complaint was submitted on Wednesday evening to the Superintendent of Police, Sangli, by Vaibhav Mane, a film financier by profession. Mane, who is also known to be a childhood friend of Indian cricketer Smriti Mandhana, alleged that he was introduced to Palash Muchhal by Mandhana’s father, Srinivas Mandhana, during Muchhal’s visit to Sangli.

Following the introduction, discussions reportedly took place regarding a potential film project and investment opportunities, eventually leading to Mane’s financial involvement.

Rs 40 Lakh Invested for Film ‘Nazariya’, Claims Complainant

According to the complaint, Muchhal proposed a film titled Nazariya and assured Mane that the project would be completed swiftly, released on an OTT platform, and generate quick returns. Trusting these assurances, Mane claims he agreed to invest in the project.

Mane has alleged that he invested a total of Rs 40 lakh, transferred in multiple instalments through both cash and digital payment methods, including Google Pay. He has submitted transaction records and supporting documents to the police to back his claims.

However, the complainant stated that the film was never completed. When he sought the return of his investment, Muchhal allegedly gave repeated assurances before eventually avoiding calls and blocking Mane’s contact number.

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Police Verification Underway, Further Action Pending

After waiting several months without any repayment, Mane approached the Sangli district police and filed a complaint alleging cheating and financial fraud. Police officials have confirmed receipt of the complaint and said that the documents and transaction details are currently being verified.

An official stated that the case is under preliminary investigation and further action will be taken after examining the evidence.

The allegations have drawn public attention, especially as Palash Muchhal was recently in the news following reports of his cancelled wedding to Smriti Mandhana. Muchhal has since resumed work and is reportedly preparing for his next directorial project, which is said to feature actor Shreyas Talpade in a leading role.