Priyadarshan accused producer Firoz Nadiadwala of repeated insults, saying Nadiadwala had also asked lead actor Akshay Kumar to exclude him from the project.

He said Nadiadwala had disparaged his original 2000 film “Hera Pheri” and claimed to have personally re-edited his five-hour cut.

The director said he had rejoined the project only at the insistence of Akshay Kumar, Suniel Shetty and Paresh Rawal, and described the trio’s enthusiasm when he first pitched the story to them.

Priyadarshan said he believed the sequel could have surpassed the box-office success of “Dhurandhar” and ranked among India’s biggest franchises, had he been allowed to complete it.

He said Seven Arts Films had since flagged unresolved legal disputes over the film’s rights, complications he described as major obstacles to production.

“In my view, ‘Hera Pheri’ was born in 2000, ‘Phir Hera Pheri’ fell ill in 2006, and ‘Hera Pheri 3’ is perhaps already dead,” Priyadarshan said, adding that this reflected his personal assessment rather than an official cancellation.

No formal announcement on the film’s status has been made.

The first two films in the franchise, released in 2000 and 2006, remain among Bollywood’s most successful comedies.

The characters of Raju, Shyam and Babu Bhaiya, played by Kumar, Shetty and Rawal respectively, continue to feature widely in memes and viral clips.

The third instalment’s future has grown increasingly uncertain following Rawal’s temporary exit and return last year, and now Priyadarshan’s departure.

Priyadarshan said his professional relationship with Akshay Kumar remains unaffected. The two are working together on an upcoming comedy as well as “Haiwaan,” slated for release on September 11.

Industry analysts say further delays are likely unless the rights dispute is resolved, with fans still awaiting an official statement from producers.