The much-anticipated Hera Pheri 3 has landed in hot water following Paresh Rawal’s unexpected exit from the project. His departure has now escalated into a full-blown legal battle with Akshay Kumar, who not only stars in the film but also serves as its producer.

According to Times Now, Akshay Kumar’s legal team accused Paresh Rawal of breaching contract and unprofessional behaviour after the veteran actor quit the film midway. In response, Rawal’s representatives countered that his exit was legally justified, citing the producers’ failure to share a final screenplay or a long-form agreement.

Rawal, known for his iconic portrayal of Babu Bhaiya, reportedly signed a term sheet in March without legal consultation, relying on his long-standing rapport with Akshay Kumar. Although he shot a promotional clip in April, the absence of a final script and production clarity raised red flags for the actor. His legal team maintained that this lack of preparedness forced him to walk away from the project.

The dispute intensified after Akshay’s team served legal notices to Rawal, director Priyadarshan, and actor Suniel Shetty. The notice prohibited them from engaging in any Hera Pheri promotions or activities, warning that any such action would be considered a breach. It also stated that all character rights, including Babu Bhaiya, belong to producer Firoz Nadiadwala.

Akshay’s legal counsel, Pooja Tidke, confirmed the legal action, stating that Rawal had already shot multiple sequences, including a three-and-a-half-minute trailer. “Suddenly, we received a notice saying he’s no longer associated with the film. It shocked everyone,” she said.

In a turn of events, Rawal’s legal team claimed he had returned the partial payment of Rs 11 lakh with an additional 15% interest. “My lawyer has responded appropriately. Once they read it, all issues will be laid to rest,” Rawal wrote on X.

A Bollywood Hungama report revealed that Rawal’s total fee was Rs 15 crore, with Rs 14.89 crore scheduled to be paid after the film’s release, likely in 2026 or 2027. The long delay in payment was reportedly a key factor behind his exit.