Khanna, considered as Bollywood's original 'superstar', passed away on July 18 last year following health problems.
In order to honour the superstar and pay a befitting tribute, UTV Stars, an entertainment channel, will install this statue at the 'Walk of the Stars' at Bandra Bandstand Promenade.
The statue shows Khanna carrying two balloons in his right hand, which immortalises one of his iconic poses from his film 'Anand'.
The late actor's wife Dimple Kapadia, daughter Twinkle, son-in-law Akshay Kumar along with industry friends like Rishi Kapoor, Jeetendra, Hema Malini, Randhir Kapoor, Rakesh Roshan, Asha Parekh, Zeenat Aman, Farhan Akhtar with wife Adhuna and mother Honey Irani, Mithun Chakraborty, Anju Mahendroo, Amar Singh, Rajiv Shukla and others were present on the occasion.
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"My journey with him was good, thriling... A roller coaster ride. I feel honoured to be with him and have two children. We are proud to have his statue," she said.
Dimple even recited a line from Khanna's last advertisement, in which he says, "Babu moshai, mere fans mujhse koi nahi cheen sakta" (nobody can take my fans away from me).