"Aligarh", starring Rajkummar Rao and Manoj Bajpayee, is based on the real life incident of professor Shrinivas Ramchandra Siras, who was fired from his job because of his alleged sexual orientation.
Mehta had criticised the censor board for the A certificate, saying he was "surprised" by the cuts they asked for in the film and termed the board "homophobic".
Nihalani, defending his decision, said the the topic of homosexuality is not for kids and teenagers to watch.
Mehta had alleged that by giving the trailer an A certificate the censor board has "put a stop to the promotions" as the promo will now run only with an adult rated film.
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Nihalani further said it is unfair to compare A certificate given to "Aligarh" with the promos of adult comedies "Mastizaade" and "Kya Kool Hai Hum 3".
200 cuts before they were passed. In fact, we have given an A-Certificate to 'Aligarh', but have not cut any visual scenes. There are only a few verbal cuts. Rest everything has been passed. So how can they say we are sabotaging the film because it's about homosexuality? This is sending out a wrong message. We have cleared his film," Nihalani added.
On the new committee appointed by the Centre to look into the working of the board, which has been at he receiving end of criticism by filmmakers for its decisions, Nihalani said a few people will still be unhappy.