Mohan, who was in his early 60s, breathed his last at his residence here. He is survived by his two sons and wife.
TV producer Manish Goswami, who worked with the veteran actor on shows like "Parampara", "Karz", "Kitty Party", "Abhiman" and "Tanhaiya", said he was first operated for brain tumour 18 years ago.
"He got his first attack in 1996 in the US, where he was shooting for a film. That time, I was working with him on two shows 'Parampara' and 'Karz'. I had to change the scripts.
Bhandari's another friend Ashok Pandit said, "We have lost a talented actor and a good human being."
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Mohan left his banker's job over two decades back to pursue his interest in acting.
Post his first surgery, he made his comeback into showbiz. He next bagged a role in "Saat Phere". Mohan was admired for his character of a supporting father to a dark-complexion girl, who struggled to find a suitable groom.
His last rites were performed today by his actor son Dhruv, who is currently seen on TV show "Tere Sheher Mein".