The news of Dutt, who is out on a 30-day parole, doing Gupta's film went rife after the actor dropped onto the sets of "Jazbaa", which marks comeback of actress Aishwarya Rai Bachchan, on Friday.
"BAAVLE ho gaye hain kya sab? (Has everyone gone mad?) Where do these bizarre rumours even stem from?" Gupta tweeted.
Dutt is out on parole to tend to his daughter, who is to undergo nose surgery. And he has previously worked with Gupta for movies like "Kaante", "Musafir" and "Jung".
"Jazbaa", an action thriller, also features Irrfan Khan and Shabana Azmi. It is slated to hit theatres on October 9.