More than thirty years after the original Khalnayak captured audiences, director Subhash Ghai has announced that a sequel is officially underway. Sanjay Dutt will reprise his role as Ballu, the notorious criminal from the first film. However, the narrative will introduce a fresh, younger character who will challenge Ballu.

An insider revealed to Filmfare, "Subhash ji is thrilled about bringing Khal Nayak back to life. The sequel will feature new characters portrayed by newcomers, while still retaining the essence of the original. Madhuri Dixit and Sanjay Dutt may also appear in special roles. The project is currently in development, and the team is very enthusiastic about it."

In an interview with Etimes, Ghai clarified that the film will not be a reboot of Ballu’s character. Instead, it will focus on a younger protagonist. He stated, "I am not searching for actors to play Ballu Balram but rather a younger actor for a new character in Khalnayak 2, who will face off against the now 55-year-old Ballu, played by Sanjay Dutt. This structure is reminiscent of The Godfather series, where Al Pacino and Marlon Brando represented different eras of the story."

As reported by a media outlet, Ghai is considering prominent names such as Ranveer Singh, Ranbir Kapoor, Allu Arjun, and Yash for this new role. "Subhash Ghai is keen on approaching actors like Ranveer Singh and Ranbir Kapoor for the character of Ballu Balram. He is also looking beyond Bollywood, with Allu Arjun and Yash on his radar. He wants someone capable of carrying forward the legacy of Ballu Balaram," the source added.

Khal Nayak, released in 1994, is an action crime film that Ghai wrote, directed, and produced under his banner, Mukta Arts Ltd. The film features Sanjay Dutt, Madhuri Dixit, and Jackie Shroff, and revolves around the efforts to recapture the escaped criminal Ballu by sub-inspector Ram and his girlfriend Ganga.