Matters are reportedly getting heated for ‘Hera Pheri 3.’ Recently, Paresh Rawal, who stars as the beloved Baburao in the film franchise, confirmed his exit from the third instalment. The unexpected turn in events after a greenlight, confused fans. Following this, reports emerged that Akshay Kumar is suing him for 25 crores for sabotaging the film. Now, his production banner has issued a statement revealing the details.

Following Paresh Rawal’s exit from ‘Hera Pheri 3,’ Kumar’s production banner, Cape of Good Films, has released a statement. The banner is bankrolling the title. The statement revealed that Rawal had accepted an 11-lakh signing amount. It claimed that the actor did not express his dissatisfaction at any point in time during the initial shoot. Additionally, the statement also issued a warning. It stated that if Paresh Rawal didn’t deposit 25 crores within seven days, civil and criminal actions would be initiated against him.

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The reported statement read, “Mr Rawal had publicly acknowledged his participation in the film on 30th January 2025 via a post on his official X (formerly Twitter) handle. He further formalised his commitment by executing a Term Sheet dated 27th March 2025. Pursuant to which he accepted a part payment of Rs 11,00,000/- towards his remuneration. Acting in complete reliance on his public endorsement and contractual commitment, Cape of Good Films incurred substantial production and promotional expenditures, including those for the teaser and initial film shoot, in which Mr Rawal actively participated.”

Cape of Good Films sues #PareshRawal for ₹25 Cr over ‘Hera Pheri 3’ exit!

The production house alleges unprofessional conduct after the veteran actor walked out midway through the project.

All efforts were made to ensure a debt-free revival of the franchise, with rights… pic.twitter.com/1aIdFTK9MA

— Sumit Kadel (@SumitkadeI) May 20, 2025

Moreover, the banner revealed that the actor shot a substantial part of the teaser. “The teaser shoot commenced on 3rd April 2025, and over 3 minutes of footage was shot with Mr Rawal. He also engaged in creative discussions and planning with fellow cast members, including Mr Akshay Kumar and Mr Suniel Shetty. At no point during this period were any concerns raised by Mr Rawal regarding creative issues.”

Cape of Good Films also stated that they have incurred losses over Paresh Rawal’s abrupt exit. “It is only after these significant investments and scheduling commitments were made that Mr Rawal abruptly attempted to exit the project, citing vague and belated creative differences. Cape of Good Films firmly believes that this justification is an afterthought, contrived to inflict maximum disruption on a beloved film franchise and undermine the goodwill it commands.

The sudden and unjustified withdrawal has caused severe financial loss, disrupted schedules, and jeopardised the momentum of a high-value production. In view of this, Cape of Good Films has demanded damages to the tune of Rs 25 crores from Mr Rawal. If the demand is not complied with within seven days, the company will be constrained to pursue appropriate legal remedies, including civil and criminal action.”

Previously, in a brief statement to Bollywood Hungama, Rawal confirmed that he is no longer a part of the film. He said, “Yes, it’s a fact.”

With the issue taking a legal turn, it remains to be seen how the fate of the title plays out.

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