"After 25 years and 17 films, I had to give my audience something bigger and better. 'Mumbai Saga' is by far my most ambitious film which needed a visionary producer," Gupta said in a statement.
"And I am grateful to Bhushan Kumar for putting his faith and might in it. It is one such story that needs to be said on screen," he added.
On the film, Kumar said "'Mumbai Saga' is our first in the gangster drama genre and who better than Sanjay to direct it. The film is inspired by true events yet makes the characters so larger than life. The entire cast will bring so much to the table."
Gupta on Friday also took to Twitter and presented the entire cast, calling them the "gangstas" of the movie.
"The legend of Bombay, the saga of Mumbai! Presenting the Gangstas of 'Mumbai Saga'," he captioned the image which featured the cast.
The film is likely to release in 2020.
It is a Gulshan Kumar presentation, and is backed by T-Series and White Feather Films production. The film is produced by Bhushan Kumar, Krishan Kumar and Anuradha Gupta.