The highly anticipated "Hera Pheri 3" has been hit with unexpected turbulence, as Paresh Rawal's sudden exit from the project has triggered a legal battle with Akshay Kumar's production house, Cape of Good Films. The production house is seeking damages of ₹25 crore from Rawal, citing breach of contract, financial losses, disrupted schedules, and reputational damage to the film and its franchise.

According to legal counsel Parinam Law Associates, representing Cape of Good Films, Rawal had publicly acknowledged his participation in "Hera Pheri 3" on January 30, 2025, via a post on X (formerly Twitter). He then formalized his commitment by executing a Term Sheet on March 27, 2025, and accepted a partial payment of ₹11 lakh towards his remuneration. The production house claims that Rawal actively participated in the film's teaser shoot on April 3, alongside co-stars Akshay Kumar and Suniel Shetty, and engaged in creative discussions without expressing any dissatisfaction.

However, Rawal later withdrew from the project, citing "creative differences," an explanation that the producers have dismissed as a "post-facto excuse" intended to sabotage the film and stall production. The production house claims that Rawal's sudden and unjustified withdrawal has caused severe financial loss, disrupted schedules, and jeopardized the momentum of a high-value production. They also intend to seek injunctive relief and hold Rawal personally liable for any harm caused to co-actors, the director, and other parties associated with the project.

Pooja Tidke, a lawyer representing Akshay's production house, stated that there has been "reputational damage" for the actors involved in the film, and their franchise. She added, "There's reputational damage involved for the actors that are committed to the film, the franchise as a whole, and of course there's a great deal of disappointment among the audience. So we're optimistic that things work out, but as of now we're facing legal issues."

The controversy has sent shockwaves through the Bollywood industry, with many expressing surprise and disappointment over the turn of events. Some industry insiders have suggested that Akshay Kumar and Paresh Rawal could have resolved the issue through dialogue, while others have criticized Rawal's actions as unprofessional and a blatant disregard for professional integrity and commercial morality.

Adding to the turmoil, director Priyadarshan revealed that Akshay Kumar was deeply affected by Rawal's decision to leave the project. He quoted Akshay saying "Priyan, why is Paresh doing this to us?". Priyadarshan also clarified that he did not attempt to stop Rawal from leaving, as the actor had already made up his mind and did not wish to discuss the matter.

Rawal, however, has clarified that his decision to step away from "Hera Pheri 3" was not due to creative differences with Priyadarshan, reiterating his respect for the director. Despite Rawal's explanation, the legal battle continues, leaving the future of "Hera Pheri 3" uncertain and fans of the franchise disappointed.