Last year, Paresh's exit from the film became a topic of discussion after Akshay Kumar's production company, Cape of Good Films, sent him a legal notice asking for Rs 25 crores in damages.
They claimed he broke the contract and caused financial loss.However, the situation was settled when Paresh agreed to come back for the film.
"I needed Firoz Nadiadwala's approval," Paresh said, explaining the situation.
"There was never any problem with working with Akshay Kumar.It wasn't about feeling uncomfortable.It was about a contract.If I wanted to do the film, I needed Firoz's approval because he owns the Hera Pheri franchise and other films like Awara Paagal Deewana and Welcome.Without his approval, I couldn't commit."
He also mentioned that the legal issues made him decide to walk away: "When the legal notice came, I thought, 'Why am I getting involved in this?
Am I here to enjoy making the film or get stuck in legal problems?' I told myself I didn't want to be part of it anymore."
Paresh also shared his thoughts on the Rs 25 crores legal notice sent by Akshay's production house.
Instead of seeing it as a personal attack, he thought it was more of an emotional reaction: "I really believe the legal notice was more of an emotional response.He might have felt upset or confused when I said no."
He added that even though there was a disagreement, he and Akshay didn't need to talk about it for long: "We didn't sit down and discuss everything, but we worked together afterwards.
Sometimes, you don't even need to say the words.That's just the polite way to handle things."
Paresh's exit from Hera Pheri 3 last year caused a lot of talk among fans of the franchise.
Shortly after his announcement, Cape of Good Films claimed Rs 25 crores in damages, accusing him of breaking the contract and sabotaging the film.
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