Dutt, convicted in the 1993 Mumbai serial blasts case and currently lodged in Pune's high-security Yerawada Central Prison, will walk out of jail on February 27 after the Maharashtra government cleared a proposal for remission of his sentence.
Producer Boney Kapoor hoped that Dutt walks out of the jail as a changed person.
"I am very happy for him. He is someone who deserves to be out. I hope he comes out as a better man, a better person and a better actor."
Dutt is being given remission as per the jail manual after clearance from the Home department.
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Minister for State (Home) Ranjit Patil signed the file allowing Dutt's release, without penalising him for reporting late from his furlough in January 2015.
Producer Mukesh Bhatt said he was happy the "Munnabhai" actor will now lead a normal life.
"I am very happy to hear the news. Finally he has served his term, has washed his hands clean and will now lead a normal life. And this on the fact that he has been released on his good behaviour during his term. I am extremely happy."
Dutt was sentenced to five-year imprisonment after he was convicted for possessing an illegal weapon, part of the cache meant to be used during the 1993 Mumbai serial blasts in which 257 people were killed.
The 56-year-old actor was jailed in 1996 and spent 18 months behind bars before walking out on bail.
In 2013, the Supreme Court sentenced him to five years in prison for the crime. Dutt is now completing the remaining prison term of 42 months.
doing, it is confirmed that he will is working in director Siddharth Anand's next, an action drama which is likely to go on floors this summer. This is most likely to be the first film that Dutt will shoot after his release.
He will be seen in the third installment of much-loved Rajkumar Hirani-helmed "Munna Bhai" series.
Dutt's close friend, director Hirani is also currently working on the biopic of "Vaastav" star, with Ranbir Kapoor in lead role.
Besides this, director Indra Kumar also plans to make the third part of the "Dhamaal" franchise with Dutt. "Oh My God" director Umesh Shukla has a story for Dutt which he had narrated to Manyata when the actor was in jail.