Palaash Muchhal breaks silence on Rs 40 lakh cheating case alleged by Smriti Mandhana's friend: 'These claims are...'

Palaash Muchhal has been accused of cheating a Sangli man of Rs 40 lakh in connection with a proposed film venture. While the complainant has sought registration of an FIR against Muchhal, the police are examining the details mentioned in the complaint as part of an initial probe. Amid this, Muchhal has finally addressed the allegation, stating that "these claims against me are entirely baseless and factually incorrect."

Taking to his Instagram story, Muchhal wrote, “In light of the allegations made by Sangli-based Vidnyan Mane on social media, I wish to state that these claims against me are entirely baseless and factually incorrect. They have been made with malicious intent to tarnish my reputation, and they will not go unchallenged. My lawyer, Shreyansh Mithare, is exploring all legal avenues, and this matter will be dealt with strictly through the appropriate legal channels.”

The complainant, Vidnyan Mane, Smriti Mandhana’s childhood friend and a film financier, submitted a written application to the Sangli Superintendent of Police on Tuesday, requesting the registration of a First Information Report (FIR) against Muchhal, according to a police official. He alleged that Muchhal took money from him to invest in the film, Nazariya, with the promise that it was about to secure an early OTT release and the investment would be returned soon. But after his film failed to materialise, he did not return the money taken from him. He shared that documents substantiating his claim have been submitted to the Superintendent of Police. 

In his complaint, Vaibhav told the police that the film was never completed, and the director promised to repay him before blocking him. After waiting for months, he approached the Sangli police to file a case of financial fraud.

When Palaash Muchhal and Smriti Mandhana called off their wedding

Palaash Muchhal and Smriti Mandhana had officially called off their wedding. The ceremony, originally set for 23 November 2025, was first postponed due to health emergencies in both families and then permanently cancelled in early December 2025. After weeks of speculation, both released statements confirming the split. While Smriti said she needed to “clarify that the wedding is called off” and asked for privacy, Palaash, who was accused of cheating, wrote, “I have decided to move on in my life and step back from my personal relationship. Its been very difficult for me to see people react so easily on baseless rumours about something which has been most sacred to me. Its the most difficult phase of my life and I will deal with it gracefully holding on to my beliefs.”