The romantic film also stars Sidharth Malhotra in the lead role.
There were reports that Katrina made several demands during the dance rehearsals.
Mehra, who is making her directorial debut with the movie, said the team is having a great time shooting.
"I wonder where such stories originate. It's absolute rubbish. We have been having a blast working with Bosco, Siddharth and Katrina," she said.
"I have known Katrina for years. Whenever we work it's only love and respect we have for each other. So news like this is disturbing. Our rehearsals are underway and going great," Bosco said.
The film, produced by Farhan Akhtar, is scheduled to release next year.
