Veteran Bollywood actor Paresh Rawal, celebrated for his iconic comic portrayal as Babu Bhaiya in the Hera Pheri franchise, is once again in the headlines, though this time due to a legal dispute. The actor has reportedly been served a ₹25 crore legal notice by Cape of Good Films, the production house behind the much-anticipated Hera Pheri 3, alleging unprofessional behavior following his abrupt departure from the film.

The controversy erupted after Rawal unexpectedly stepped away from the project, despite having participated in a promotional video alongside co-stars Akshay Kumar and Suniel Shetty, and even shooting some initial footage. The producers assert that Rawal’s sudden exit has inflicted significant delays and substantial financial setbacks. After nearly two decades of persistent efforts to secure the rights and clear existing debts surrounding the beloved franchise, his withdrawal has reportedly jeopardized the entire venture.

While Paresh Rawal, in a recent tweet, clarified that his decision was not due to creative differences with director Priyadarshan, he initially refrained from providing a clear explanation. However, emerging reports now indicate his primary concern stemmed from a contractual clause: a substantial portion of his ₹15 crore fee was slated for payment only a month after the film’s release, expected in late 2026 or 2027. This lengthy deferment reportedly led to his decision to exit, prompting him to return his signing amount with interest.

Rawal’s sudden move has left not only the producers but also his co-stars and the ardent fanbase in disappointment and confusion. Director Priyadarshan expressed shock, stating he still does not fully comprehend the reason behind Rawal’s decision. This high-profile case is poised to set a crucial precedent for how actor walkouts are handled in Bollywood, as production houses increasingly adopt stricter, Hollywood-style contractual agreements.