Raaj Shaandilyaa and Ekta Kapoor’s Balaji Telefilms are facing a legal dispute after Shaandilyaa lost his contract, which has halted major Bollywood productions and left the future of Bhagam Bhag 2 uncertain.

Ekta Kapoor filed a lawsuit against Shaandilyaa because he broke their contract which obligated him to produce three films. Kapoor’s legal team alleges that Shaandilyaa began working on external projects including Bhagam Bhag 2 without obtaining the necessary No Objection Certificate NOC from Balaji Telefilms or returning his advance payment for his third film under her production company.

Shaandilyaa’s representatives released an official statement claiming that he terminated his contract in accordance with his “contractual rights.” The company presented evidence that he followed proper procedures, as they delivered the termination notice to Shaandilyaa two weeks before the public learned of their conflict.

The legal battle has already affected Bhagam Bhag 2, as a legal notice forced Ashwin Varde and Cape of Good Films to cancel their planned March 2026 filming in Lucknow. Shaandilyaa has claimed that the project is maintaining its original schedule, but production has halted because industry sources expect a new director to begin work later this year to prevent upcoming legal disputes.

The lead actors, Akshay Kumar, Manoj Bajpayee, and Paresh Rawal, have announced their availability, which creates uncertainty about the film’s future as the dispute continues.