The two Hollywood stars 'won' the Have You Gone CRAZY Award for roles in Bollywood romantic comedy Kambakkht Ishq (Unfortunate Love).
They beat nominated home grown stars like Shah Rukh Khan, Akshay Kumar, Priyanka Chopra and Nikhil Advani to land the dishonour, which was announced at a gala in New Delhi on Friday night (12Mar10).
Kambakkht Ishq was also named Worst Film.
Neither Stallone nor Richards were present at the gala - a fact that troubled leading Indian film experts.
Indo-American Leadership Confederation chairman Rajan Zed tells WENN, "Stallone and Richards should have attended the gala and showed courage, thus making it a learning experience. Being humble is highly honourable."
Meanwhile, Chandni Chowk to China was the event's big 'winner' claiming three Golden Kela Awards, including the Insensitivity Award.
The awards - Bollywood's version of the Golden Raspberry Awards - were launched in 2008.
Kela translates as 'banana' in Hindi.