Akshay Kumar & Paresh Rawal have been in the news for the controversy surrounding the third installment of their popular film Hera Pheri.

The recent controversy surrounding Akshay Kumar & Paresh Rawal stems from Rawal’s abrupt exit from Hera Pheri 3, a highly anticipated film in the beloved comedy franchise. Akshay Kumar, who is both a lead actor and producer through his company, Cape of Good Films, has filed a ₹25 crore lawsuit against Rawal, alleging unprofessional conduct and breach of contract after Rawal left the project despite shooting a teaser and receiving a ₹11 lakh signing fee.
The legal notice claims Rawal’s departure caused significant financial losses and disrupted schedules, as shooting had begun with over three minutes of footage filmed.
Rawal’s legal team, however, argues his exit was justified due to the absence of a script, long-term agreement, or clear production details. They claim Rawal signed a term sheet in good faith based on his rapport with Kumar but was not provided with essential deliverables, making his decision to leave “rightful.” Rawal also returned the ₹11 lakh with interest and stated his exit was not due to creative differences with director Priyadarshan, whom he respects, but because he found the role of Baburao Ganpatrao Apte creatively unappealing at this stage in his career.
The dispute has sparked widespread discussion, with co-star Suniel Shetty expressing shock and calling it a “crisis” for the film, while emphasizing he hopes for no animosity between Kumar and Rawal. At a Housefull 5 trailer launch on May 27, 2025, Kumar addressed the issue, defending Rawal against negative comments, highlighting their 32-year friendship, and stating the matter is serious and will be handled by the courts.
● Details on legal proceedings
The legal proceedings between Akshay Kumar and Paresh Rawal regarding Hera Pheri 3 center on a ₹25 crore lawsuit filed by Kumar’s production company, Cape of Good Films, against Rawal for breach of contract and alleged unprofessional conduct.
Here are the details based on available information: Background of the Dispute:
Paresh Rawal’s Exit: Paresh Rawal, set to reprise his iconic role as Baburao Ganpatrao Apte, announced his exit from Hera Pheri 3 on May 18, 2025, via a post on X, stating it was not due to creative differences with director Priyadarshan but because he no longer felt connected to the role.
Filming and Commitment: Shooting began in April 2025, with Rawal participating in a teaser shoot and over three minutes of footage filmed alongside co-stars Akshay Kumar and Suniel Shetty. Rawal had publicly confirmed his involvement on January 30, 2025, via X and signed a term sheet on March 27, 2025, accepting a ₹11 lakh signing fee.
Contract Terms: Reports indicate Rawal’s total fee was set at ₹15 crore, with ₹14.89 crore deferred until one month after the film’s release, expected in late 2026 or 2027. This payment structure is cited as a potential reason for his exit, though Rawal’s team denies financial disputes as the cause.
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● Details of the Legal Action:
Lawsuit Filed: On May 20, 2025, Cape of Good Films issued a legal notice to Rawal, demanding ₹25 crore in damages for financial and logistical setbacks caused by his abrupt departure. The lawsuit accuses Rawal of “gross unprofessionalism” and “blatant disregard for professional integrity” for exiting after signing a contract, accepting the signing fee, and participating in pre-production and filming.
Claims by Kumar’s Team: Pooja Tidke, Joint Managing Partner at Parinam Law Associates, representing Cape of Good Films, stated that Rawal’s exit disrupted synchronized schedules, incurred substantial production costs (including cast, crew, logistics, and equipment), and damaged the franchise’s reputation. She emphasized “severe legal consequences” and noted that Rawal had seven days to respond to the notice.
Financial Impact: The production house claims significant expenses were incurred, including costs for a teaser shoot and initial filming, which Rawal’s participation had justified. The lawsuit argues that his exit caused delays and affected the project’s timeline, potentially impacting fan expectations and the franchise’s legacy.
● Paresh Rawal’s Response:
Legal Counter: On May 25, 2025, Rawal responded via X, stating that his lawyer, Ameet Naik, had sent an “appropriate response” to the lawsuit, asserting his exit was “rightful” and that all issues would be resolved upon review.
Lawyer’s Statement: Rawal’s legal team, Anand & Naik, issued a statement to IANS, claiming that Cape of Good Films failed to deliver a story, screenplay, or a long-form agreement, which were fundamental to Rawal’s engagement. They also noted that original producer Firoz Nadiadwala had raised concerns about the film’s rights, further justifying Rawal’s decision to exit. Rawal returned the ₹11 lakh signing fee with 15% annual interest and an additional goodwill amount.
Reason for Exit: Rawal clarified that his departure was not due to creative differences or financial demands (contrary to initial reports suggesting he demanded ₹25 crore). Instead, he cited a lack of creative appeal in reprising Baburao and the absence of essential deliverables like a script.
● Additional Context:
Industry Reactions: Director Priyadarshan expressed shock, stating Rawal did not inform him or Kumar of his decision, despite prior confirmation of his participation. Suniel Shetty called the situation a “crisis,” emphasizing the impossibility of making Hera Pheri 3 without Rawal and expressing hope for reconciliation to avoid animosity.
Legal Precedents: Sources close to the production suggest this lawsuit could set a precedent for accountability in Bollywood, comparing it to Hollywood’s stricter contract enforcement. Rawal has previously exited projects like Oh My God 2 (2023) and Billu Barber due to creative dissatisfaction, indicating a pattern of prioritizing artistic fit.
IP Rights Issue: Firoz Nadiadwala, the original producer, issued a notice to Rawal questioning the film’s rights, which Kumar acquired. This adds complexity to the legal dispute, though it’s unclear how it directly impacts the lawsuit.
Current Status: As of May 27, 2025, the legal proceedings are ongoing, with Rawal’s team having responded to the notice. No further public statements from Kumar or Rawal have detailed the resolution, though Kumar stated at the Housefull 5 trailer launch on May 27, 2025, that the matter is serious and will be handled by the courts.The lawsuit has raised questions about Hera Pheri 3’s future, with fans and industry insiders speculating whether the film can proceed without Rawal or if this is a publicity stunt to generate buzz, as suggested by some trade analysts.
Critical Note: Some reports, Incorrectly stated the lawsuit amount as ₹50 crore, but most sources confirm it is ₹25 crore. The information here prioritizes consistency across multiple reports. The dispute remains unresolved, with potential implications for the film’s production and the professional relationship between Kumar and Rawal, who have collaborated for over 30 years.
Fans await further developments, particularly regarding whether the iconic trio will reunite or if the franchise faces another setback.