Veteran actor Paresh Rawal has returned his signing amount for the much-anticipated comedy sequel Hera Pheri 3, along with 15 per cent annual interest, following his decision to exit the film, sources told Bollywood Hungama.

The actor was initially signed for a fee of Rs 15 crore, with an upfront signing amount of Rs 11 lakh.

According to insiders, the return of the signing amount comes after a legal notice was served to Rawal by Akshay Kumar’s production house, Cape of Good Films, for his sudden withdrawal from the project. A source familiar with the matter revealed, “Paresh Rawal has returned the Rs 11 lakh signing amount with 15% p.a. interest, along with an additional sum for stepping away from the series.”

The actor had reservations about a clause in the agreement stipulating that the balance payment of Rs 14.89 crore would be disbursed only after the film’s release, expected in late 2026 or 2027. The principal photography for Hera Pheri 3 was slated to begin next year, meaning Rawal would have had to wait nearly two years to receive the remainder of his fees.

The legal team representing the producers expressed displeasure over Rawal’s exit, stating that it has affected the franchise and resulted in financial losses. “There have been expenses incurred towards the cast, crew, senior actors, logistics, equipment, and shooting of the trailer,” a legal representative told PTI. She warned of possible legal consequences for Rawal’s withdrawal.

Rawal confirmed his exit from the film on May 18 via his social media account, emphasising that his decision was not due to any creative differences with director Priyadarshan. “I hold immense love, respect, and faith in Mr Priyadarshan,” he wrote, breaking the hearts of many fans who consider his portrayal of Baburao indispensable to the franchise.

Co-star Suniel Shetty also voiced surprise at the news, remarking that the film could not move forward without Rawal. Meanwhile, fans have speculated on possible replacements for the iconic role, with names like Pankaj Tripathi trending. However, Tripathi himself respectfully declined, saying, “Paresh ji is an amazing actor. I am zero in front of him.”

With Hera Pheri 3 now shrouded in uncertainty, the industry awaits further updates on the casting and production of the film that has been a beloved comedy staple for years.