Palaash Muchhal responds to Rs 40 lakh financial fraud allegations and seeks Rs 10 crore in damage; music composer removes Instagram posts with Smriti Mandhana amid cheating row

Palaash Muchhal has once again found himself at the centre of a fresh controversy after an actor and producer filed a complaint with the Maharashtra's Sangli police that the he was allegedly cheated of Rs 40 lakh by the music composer and filmmaker. Palaash Muchhal has denied the allegations levelled against him in an Instagram post calling them 'entirely baseless and factually incorrect'. The actor-producer Vidnyan Mane, who has described himself as a childhood friend of Indian cricketer Smriti Mandhana accused Palaash Muchhal of infidelity and financial fraud, claiming he was duped of more than Rs 40 lakh in connection with an unreleased film project.

Palaash Muchhal responded to the claims and in a strong statement said, "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."

Palaash Muchhal seeks Rs 10 cr in damages

Palaash has also sent a legal notice to Mane, seeking Rs 10 crore in damages for defamation over the latter's allegations of cheating. Mucchal's lawyer, Shreyansh Mithare, claimed that no money had come to the composer-filmmaker, reports PTI.


The allegations are baseless and made with the intention to defame Mucchal, his lawyer said.

"We have sent a legal notice to Mane, a Sangli resident, seeking Rs 10 crore in damages for defamation," he added.

What are the allegations against Palaash Muchhal?

Palaash Muchhal was embroiled in trouble after Vidnyan Mane filed a complaint with the Sangli Superintendent of Police, alleging a financial fraud of Rs 40 lakh. Mane claimed that he met Palash through the father of Smriti Mandhana.

According to Vidnyan, during their first meeting on December 5, 2025, Palash proposed an investment opportunity in his upcoming film titled 'Nazariya'. The musician allegedly assured him a profit of Rs 12 lakh on an initial investment of Rs 25 lakh once the film was released on streaming platforms. As part of the deal, Palash reportedly also offered Vidnyan a role in the film.

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Vidnyan stated that he eventually invested a total of Rs 40 lakh in the project. However, despite waiting beyond the promised timeline, the film was not completed. He further alleged that he neither received any returns nor got a satisfactory response regarding his investment.

As per the complaint, Palash later blocked Vidnyan’s phone number, prompting him to approach the police and file an official complaint. The matter is currently under investigation by the authorities.

Palaash Muchhal accused of infidelity

In an interview with Hindustan Times, Vidnyan Mane made sensational allegations, claiming that Smriti Mandhana and Palash Muchhal’s wedding was called off following an incident during celebrations in November 2025. Mane alleged that he was present at the celebrations on November 23, 2025, when Muchhal was allegedly caught with another woman, leading to a major confrontation. He further claimed that the incident escalated into chaos and said it ultimately derailed the planned wedding.

"I was at the wedding celebrations (November, 23, 2025) when he was caught red-handed with another woman in bed. Bhayanak scene tha, he was beaten up by the Indian female cricketers. The entire family is chindi chor. I thought he’d get married and settle in Sangli, but it has completely backfired on me," Vane told the HT.

The complainant further accused the Muchhal family of exerting financial pressure on him in connection with the stalled film project. Mane alleged that he was forced to invest additional money to protect his earlier investment. According to him, when he met Amita Muchhal, Palash Muchhal’s mother, last month, he was informed that the budget required to release the film had increased to Rs 1.5 crore. He claimed he was allegedly asked to invest an additional Rs 10 lakh, with the warning that failure to do so would result in losing his previous investment.

“They started blackmailing me and threatened to remove me from the project, which forced me to file a complaint,” Mane alleged.

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According to Mane, all communication with the family stopped after the wedding was called off. He further claimed that several other artistes associated with the film had also not received their payments. Drawing a comparison, Mane said that while he had heard of financial disputes in the film industry, he described this case as “complete theft.”

Mane also claimed that he possesses evidence to support his allegations. “I have saved all proofs, including chats and phone conversations, which I am willing to share with the police and the media,” he said.

Palaash Muchhal deletes pics with Smriti Mandhana

Amid cheating allegations, Palaash Muchhal has quietly removed several Instagram posts that featured Mandhana, which were still visible as recently as January 24, 2026. A scan of Muchhal’s social media account shows that multiple photos and moments shared with Mandhana have disappeared.

Muchhal and Mandhana were reportedly scheduled to tie the knot on November 23, 2025. However, after pre-wedding functions were completed, the main ceremony was unexpectedly postponed when Mandhana’s father had to be rushed to the hospital, bringing the celebrations to an abrupt halt. The controversy resurfaced after Mane alleged that Muchhal was caught in a compromising situation with another woman, further claiming that Mandhana’s friends confronted him physically.