1. The Exit and Legal Fallout
🔍 Sudden Walkout (May 16)
- On May 16, Rawal wrote on X (formerly Twitter) that he was stepping away from Hera Pheri 3, but denied any creative disagreements with Priyadarshan, clarifying the departure was not “creative differences” indiatimes.com+3indianexpress.com+3ndtv.com+3.
- Fans expressed heartbreak, flooding social media with pleas—many claiming “Hera Pheri isn’t the same without Babu Bhaiya” ndtv.com+15m.economictimes.com+15indiatimes.com+15.
⚖️ Legal Action Ensues
- Akshay Kumar’s production banner Cape of Good Films responded by filing a Rs 25 crore lawsuit, alleging Rawal’s exit sabotaged production; they confirmed Rawal had taken an advance of Rs 11 lakh and already shot a promo bollywoodhungama.com+7ndtv.com+7indianexpress.com+7.
- Reports traced the dispute to contractual and agreement issues, not role cuts—Priyadarshan confirmed no roles were altered by Akshay; Rawal’s team emphasized missing screenplay and formal contract documentation timesofindia.indiatimes.com+6republicworld.com+6timesofindia.indiatimes.com+6.
2. Resolution & Reunion
🕊 Key Podcast Conversation
- On June 29, Rawal appeared on Himanshu Mehta’s podcast, affirming that “there’s no controversy”—he felt the need to ensure everyone was united and working earnestly, especially given fan expectations. indianexpress.com+6hindustantimes.com+6republicworld.com+6
- He explained the departure was a moment for collective “fine-tuning”—once aligned, “everything is resolved now.” hindustantimes.com+8livemint.com+8republicworld.com+8
⚡ The Payback
- Rawal also disclosed he returned the Rs 11 lakh advance plus 15% interest, highlighting real accountability and reconciliation bollywoodhungama.com+5ndtv.com+5news.abplive.com+5.
👥 OG Trio Back Together
- He confirmed the classic team—Akshay Kumar (Raju), Suniel Shetty (Shyam), and Paresh Rawal (Baburao)—would reunite under Priyadarshan’s direction. Production is set to begin in early 2026. ndtv.com+12indiatoday.in+12livemint.com+12
- Rawal emphasized their decades-long friendship and creative bond, pointing to a positive working environment. republicworld.com
3. Why the Drama Emerged
⚠️ Contract Clarity and Creative Care
- The friction arose over missing formal script, storyboards, and long-form contract, which Rawal felt needed resolution before full commitment republicworld.com+1timesofindia.indiatimes.com+1.
- In a podcast, he stressed that fan love demands extra care—a sentiment repeated across his announcements and media interviews. ndtv.com+3indianexpress.com+3hindustantimes.com+3
🧭 Legal Tensions, No Personal Fights
- Though Akshay’s team filed suit, Rawal has spoken of no personal conflict—just a professional pause for clarity. Both camps affirm a respectful resolution. timesofindia.indiatimes.com+2ndtv.com+2news.abplive.com+2
- Priyadarshan backed him, confirming the issue was overhead, not creative, and no denial or hurt was felt over roles. bollywoodshaadis.com+4indianexpress.com+4m.economictimes.com+4
4. Production & Release Timeline
🎬 Film Progression
- The film began formal development in May 2018, with production halted since Neeraj Vora’s coma and eventual passing in 2017 hindustantimes.com+2en.wikipedia.org+2en.wikipedia.org+2.
- As of January 2025, Priyadarshan confirmed he’s back at the helm and the script being finalized hindustantimes.com+1indiatoday.in+1.
- With the Rawal issue concluded, principal photography is slated for early 2026, likely targeting a release during Diwali 2026 or early 2027 reddit.com.
5. Legacy, Expectations & Fan Sentiment
🎉 Cultural Footprint
- Hera Pheri (2000) and Phir Hera Pheri (2006) are cult comedies, with Baburao’s comic genius central to their enduring popularity.
- Rawal’s portrayal remains one of Bollywood’s most iconic comedic performances—emerging memes, dialogues, and nostalgic affection still echo through pop culture.
🤝 Fan Emotional Investment
- His abrupt exit triggered a wave of emotional responses—from fans clamoring “film kaun dekhega?” (“Who will watch the film?”) to viral hashtags urging his return—proving that Baburao remains irreplaceable. navbharattimes.indiatimes.com+13ottplay.com+13timesofindia.indiatimes.com+13indiatimes.com
- The trio’s reunion brings relief—but also immense pressure to deliver a product that lives up to the legacy.
🎯 Rawal’s Responsibility Reminder
- Rawal’s warning—“don’t take things for granted”—is a recognition that with great devotion comes great responsibility—to preserve comedic timing, story sensibility, and fan trust. timesofindia.indiatimes.comhindustantimes.com+4m.economictimes.com+4economictimes.indiatimes.com+4
6. Industry Reactions & Production Comments
🗣 Peer Support
- Director Priyadarshan didn’t mince his words—this was not a personal spat, but a professional pause; the creative triad is “creative people and friends for many many years.”
- Akshay Kumar has publicly defended Rawal, calling criticisms calling him “foolish” unfair—emphasizing their partnership and mutual respect.
📽 Production Outlook
- Following Rawal’s payment reversal, the legal route appears closed—allowing the production to regain momentum.
- With script refinement, hardened contracts, and cast chemistry reaffirmed, Hera Pheri 3 is claimed to be “officially back on track” timesofindia.indiatimes.com+1timesofindia.indiatimes.com+1indiatimes.com+15sacnilk.com+15reddit.com+15.
7. What to Expect Next
🗓 Timeline Milestones
- Script Lock: currently in late polishing—Rawal’s concerns addressed.
- Pre-production & Casting: expected mid‑2025—includes outdoor promos and location scouting.
- Principal Shoot: early 2026—likely in Mumbai, with Bollywood-Hungama marking June 29 update. livemint.com+2bollywoodhungama.com+2republicworld.com+2
- Post-Production & VFX: late 2026; aiming for Diwali 2026 or early 2027 release. bollywoodhungama.com+4reddit.com+4timesofindia.indiatimes.com+4