After the success of the first part released in 2003, Varma was keen on making a sequel to be titled "Bhoot 2" and it was registered by producer Nitin Manmohan's company.
At that time, Varma and Nitin were together. However, after they parted ways, the latter announced "Bhoot 2" with Vikram Bhatt as the director.
"As the title 'Bhoot 2' was registered with Nitin Manmohan, the new producers of the sequel Alumbra Entertainment and Eros International repeatedly requested Nitin Manmohan to part with the title citing the original creator was Varma," a press release said.
"The producers repeatedly requested Nitin Manmohan to give the copyright of the title. But due to his previous tussle with RGV, things got delayed," it added.
Later, RGV decided to change the title of his film from "Bhoot 2" to "Bhoot Returns".
The film stars actress Manisha Koirala and JD Chakravarthy and Eros International will release the film worldwide on October 12.
"Bhoot Returns" is Varma's first 3D film. The film will also release in Tamil and Telugu.