Karan made his full fledged debut in films with horror film "Alone" that had Bipasha in the lead.
"We (I and Bipasha) are close to each other. We spend time together...We work out together. We enjoy each other's company," Karan told PTI.
However, he still maintains, "We are just good friends."
Karan was earlier married to television actress Shraddha Nigam and Jennifer Winget, but both his marriages failed.
Asked if he is scared of commitment, Karan said, "I am not scared of commitment. In life one does end up making right and wrong decisions. We try not to repeat the same mistakes."
The film, directed by Vishal Pandya's is sequel of his 2014 thriller "Hate Story 2".
Also starring Zarine Khan, Daisy Shah and Sharman Joshi, it is scheduled to release on December 4.