Nandita, also an actress, says that she is delighted that Chandan is part of the film, which stars Nawazuddin Siddiqui as well.
She added that he is playing a "significant role" in "Manto", a biopic of the late Pakistani short-story writer Saadat Hasan Manto.
"He plays a writer of great repute and I am convinced that he will bring great amount of authenticity and dignity to the character. I am excited that the casting is slowly falling into place with some amazing actors on board," Nandita said in a statement.
Chandan will essay the role of a dear friend of Manto.
"It's a great opportunity to play a pivotal role in 'Manto'. I have always been a big fan of his short stories. So when Nandita Das called me and offered me the role in her film I was ecstatic," the actor said.
Talking about his role, Chandan said: "I play Manto's friend who played a big role in his lifetime. I am trying to define my career now and give it a definite shape and structure."
The actor will later play John Leguizamo's character from the film "Chef" in the Hollywood movie's Indian adaptation, which stars Saif Ali Khan.
Chandan is also part of filmmaker Imtiaz Ali's next film, starring superstar Shah Rukh Khan and Anushka Sharma.
"The year starts with 'Mirzaa Juuliet' which releases in April. It is followed by Adhikari Brothers' film. After which, I have 'Chef' with Saif Ali Khan, and 'Rehnuma' by Imtiaz Ali," he said.