The conflict between producer Vashu Bhagnani and director Ali Abbas Zafar has recently escalated, with Bhagnani making serious accusations against Zafar, including the operation of a proxy firm and engagement in money laundering. The allegations center around the film Bade Miyan Chote Miyan and purported financial improprieties during its production.

Bhagnani claims that Zafar utilized a "Benami" or proxy-owned entity called Jolly Jumper Films LLC for money laundering purposes. He alleges that this company, officially registered in Abu Dhabi, is in reality run from Andheri, Mumbai, and used as a front for laundering substantial amounts of money. Bhagnani stated that he partnered with Ali Abbas Zafar and Himanshu Mehra, who operate under the banner AAZ Films, for Bade Miyan Chote Miyan, with Bhagnani funding the project while Zafar and Mehra managed production and direction.

According to Bhagnani, the film's budget was significantly inflated, by approximately Rs 80 crore. He suspects that Jolly Jumper Films LLC is being used for unlawful financial dealings on a grand scale. Despite efforts to control expenses, including negotiating actor fees down, Bhagnani claims that the final accounts remain unresolved.

In September 2024, Vashu Bhagnani and his son Jackky Bhagnani filed a complaint against Ali Abbas Zafar, alleging misappropriation of approximately Rs 9.50 crore in subsidy funds received from Abu Dhabi authorities during the shooting of Bade Miyan Chote Miyan. The complaint outlines charges including coercion, criminal breach of trust, extortion, blackmailing, criminal intimidation, harassment, criminal defamation, and money laundering. The Bhagnanis claim that Zafar utilized these funds through a shell company based in Abu Dhabi.

Adding another layer to the dispute, Ali Abbas Zafar has reportedly filed a counter-complaint against the Bhagnanis, alleging that they owe him Rs 7.30 crore as his directorial fee for Bade Miyan Chote Miyan. Pooja Entertainment has denied Zafar's claims, stating that the dues cited by Zafar do not constitute a legitimate claim, citing various set-offs that have been communicated to BMCM Films Ltd.

In December 2024, Bhagnani lodged a First Information Report (FIR) against Zafar, co-producer Himanshu Mehra, and finance head Ekesh Randive, including financial fraud, forgery, and criminal misconduct. Bhagnani accuses Zafar and his associates of conspiring to inflate the production budget from the originally approved Rs. 125 crore (excluding actor fees) to Rs 154 crore without proper justification. Specific allegations include forging invoices, overspending on luxury accommodations, equipment rentals, and hiring external vendors without necessary approvals, and that Bhagnani's signatures were forged to misappropriate funds, including rebates received from the Abu Dhabi government.

The Federation of Western Indian Cine Employees (FWICE) has also reached out to Vashu Bhagnani for clarification regarding unpaid dues. FWICE has requested Zafar to provide proof of his claims concerning unpaid dues.

The film Bade Miyan Chote Miyan was reportedly developed with a budget of around 300 crores but only collected about 102 crores at the box office.