'Chandni Bar', starring actress Tabu and Atul Kulkarni, was released on September 28, 2001 and talked about the gritty life of the Mumbai underworld, including prostitution, dance bars and gun crime.
It also helped Bhandarkar bag his first National Award.
The 46-year-old director took to Twitter to share his thoughts on the special day.
"13 years ago, on this day, Chandni Bar released and changed my life #Tabu @atul_kulkarni. An unforgettable experience!!" he wrote on his Twitter page.