Palaash
Muchhal, a director, has once again landed in controversy for allegedly cheating a local Sangli man of Rs 40 lakh in a failed film investment deal. A complaint has been lodged against him. The person named Vaibhav Mane is Indian cricketer Smriti Mandhana’s childhood friend and a film financier. She was supposed to get married to Palaash in November 2025, but their wedding was called off. In his complaint, Vaibhav claimed that he met Muchhal in Sangli and was introduced to him by Smriti’s father, Srinivas. The complainant alleged that the filmmaker took money from him to make a movie.
Palaash Muchhal accused by Smriti Mandhana's childhood friend
In his complaint, Vaibhav added that
Palaash’s film failed to materialise, and he did not return the money taken from him. Documents substantiating his claim have been submitted to the Superintendent of Police. He further said that Palaash wanted 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. Trusting him, Vaibhav invested
Rs 40 lakh in Nazariya. Transaction evidence is submitted to the authorities.
Vaibhav told the cops that the film was never completed. When asked to return his investment, the director promised to repay before blocking him. After waiting for months, he approached the Sangli police to file a case of financial fraud.
Palaash Muchhal-Smriti Mandhana call off wedding
Palaash was accused of
cheating on Smriti in November 2025. In an official statement, he 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.” He added, “I truly hope we, as a society, learn to pause before judging someone based on unverified gossip, whose sources are never identified. Our words can wound in ways we may never understand. While we think about these things, many people in the world are facing drastic consequences. My team will be taking strict legal action against those spreading false and defamatory content. Thank you to everyone who has stood by me with kindness in this tough time.” Months later, Palaash resumed work and has started his film with
Shreyas Talpade.