In a dramatic turn for one of Bollywood’s most beloved franchises, Hera Pheri 3 is now entangled in a legal trouble. Paresh Rawal, who has long been the soul of the Hera Pheri series as Babu Bhaiya, is facing a Rs 25 crore legal notice from Akshay Kumar’s production house, Cape of Good Films, over his sudden exit from the project.

Taking to X (formerly Twitter), Rawal finally addressed the controversy. He stated, “My lawyer, Ameet Naik, has sent an appropriate response regarding my rightful termination and exit. Once they read my response all issues will be laid to rest.”

This response followed reports of a legal notice served by Akshay Kumar’s production team, citing damages incurred due to Rawal’s exit. Pooja Tidke, Joint Managing Partner at Parinam Law Associates warned, “I think there will be severe legal consequences. It’s of course hurt the franchise. We have written to him letting him know that there are a lot of legal consequences involved. There have been expenses incurred towards the cast, towards the crew, towards leading senior actors, logistics equipment, and shooting of the trailer.”

She detailed that a portion of the film, around three and a half minutes was already shot, along with the promotional trailer. Contracts had been signed, money was spent, and schedules were locked in. TOI quoted the law associate, “Mr Rawal had publicly acknowledged his participation in the film on 30th January 2025 via a post on his official X.com (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.”

In a recent development, according to industry insiders, Rawal had already refunded his signing amount of ₹11 lakhs, with an additional 15% interest.