The decision was reportedly taken around a week before Sanjay returned to Pune's Yerawada Jail after his parole period ran out.
"Maanyata bhabhi (Sanjay's wife) was keen on a film being made on her husband's life for Sanjay Dutt Productions. But the couple wanted only Rajkumar Hirani to direct the film as Sanju sir has created magic with Raju (Hirani) in 'Munnabhai M.B.B.S." and 'Lage Raho Munna Bhai'," said a source.