The Central Board of Film Certification (CBFC) revoked the clearance granted to the movie after it was felt that its content could adversely affect the law and order situation, its chief Pahlaj Nihalani told PTI.
The clearance was withdrawn after a review, he said.
Security agencies are learnt to have expressed concerns about the movie as there was a view that it glorifies the assassins of Gen A S Vaidya.
The movie, 'Jinda and Sukha' is based on the lives of Harjinder Singh Jinda and Sukhdev Singh Sukha, who killed Gen Vaidya in 1986 in Pune after he led the Operation Bluestar operation to flush out militants from the Golden temple complex in Amritsar.
Last year another movie 'Kaum De Heere' made on the life of Indira Gandhi's assassins, was also denied clearance by the Censor Board.