The director, who helmed the original Hera Pheri in 2000, said ongoing legal complications and internal disagreements have cast serious doubt over whether the film will ever make it to theatres.

Speaking to media outlets, Priyadarshan confirmed recent remarks made by producer Firoz Nadiadwala and stated that he has stepped away from the project. According to the filmmaker, the situation surrounding the film has become so complicated that its eventual production and release remain far from certain.

His comments come at a time when Hera Pheri 3 continues to face multiple legal and ownership disputes involving franchise rights, character rights and music rights.

At the centre of the controversy is a claim by South Indian production company Seven Arts International, which argues that it owns the rights to the franchise and its characters. The company has reportedly alleged that Firoz Nadiadwala held only limited rights to produce the Hindi remake of the Malayalam film Ramji Rao Speaking, which later became Hera Pheri.

According to the claim, the producer exceeded those rights by developing subsequent installments and transferring certain rights related to the franchise. These allegations have contributed to prolonged uncertainty around the film's legal status.

The dispute is not limited to remake rights.

Questions have also been raised regarding ownership of the franchise’s music rights. In recent months, different parties have publicly asserted claims over various aspects of the intellectual property. Music label executive Bhushan Kumar has also spoken about ownership issues connected to the film’s soundtrack rights, adding another layer to the ongoing legal battle.

The complications have extended beyond rights issues and into casting matters as well.

Earlier, actor Paresh Rawal’s sudden departure from the project created headlines across the film industry. Reports at the time suggested that actor Akshay Kumar had initiated legal action seeking compensation linked to the dispute. However, the matter was later resolved through discussions, and the legal proceedings were withdrawn.

Following the settlement, Rawal agreed to rejoin the project, providing temporary relief to fans eager to see the iconic trio of Akshay Kumar, Paresh Rawal and Suniel Shetty return to the screen.

Despite that development, Priyadarshan’s latest comments indicate that larger issues remain unresolved.

The Hera Pheri franchise enjoys a cult following among Indian audiences. The original film, released in 2000, became a landmark comedy and introduced the beloved characters Raju, Shyam and Baburao Ganpatrao Apte. Its sequel, Phir Hera Pheri, directed by Neeraj Vora and released in 2006, further strengthened the franchise’s popularity.

For years, fans have awaited a third installment, with recurring announcements, casting updates and production reports generating significant excitement. However, repeated delays and disputes have prevented the project from moving forward smoothly.

Priyadarshan’s decision to exit the film is likely to fuel fresh speculation about the future of the franchise. While neither the producers nor other key stakeholders have indicated that the project has been shelved, the director’s remarks underline the scale of the challenges facing the production.

As legal proceedings and ownership claims continue to be debated, the fate of Hera Pheri 3 remains uncertain, leaving fans wondering whether the long-awaited sequel will eventually reach cinemas or remain trapped in development limbo.