"Sushmita is a lovely person and we never had any problem working with each other. This (rumour) is generated for publicity, but there is normally very little truth behind the talk that we didn't get along, " Lara told in an interview.
"Our country has only two Miss Universes and if they also start fighting...it couldn't get sadder than that. I just wish I had more screen time to share with her, as we had not worked together earlier and it was a fantastic opportunity, " she said.
Rumour mills were abuzz that the two actresses were having a cold war due to Lara's meaty part in the film directed by David Dhawan.
Lara hoped she would get a chance to work again with Sushmita, who was crowned Miss Universe in 1994.
"I hope people will cast us again at some other time. At least David (Dhawan) should do it again, " said Lara, who was crowned Miss Universe in 2000.
Co-produced by Big pictures and Vashu Bhagnani, "Do Knot Disturb" is a laugh riot on marriage and infidelity. Releasing Oct 2, the movie also stars Govinda, Riteish Deshmukh, Sohail Khan, Ranvir Shorey and Rajpal Yadav.
Throwing light on her character, Lara said: "I play Dolly who is sort of a pin-up girl for men. But her own life is very complicated as she loves a man who is her sugar daddy.
"She wants security too; so she has an ex-boyfriend who truly loves her and at the same time she also has an unsuspecting soul who enters her life and turns into her best friend. So it's complicated for her to decide what is it that she actually wants in life among security, love, compatibility and her best friend. That ties a knot in her life, which she has to unravel."
Comedy is Lara's forte as she showed her funny side in "Masti", "No Entry", "Bhagam Bhag" and "Partner".
"I love doing comedies. There's been an image of Miss Universe tagged to me and normally people associate me with being more cerebral and more poise because of the crown.
"But what people don't know is that I am very comic in real life too. Doing comedies just gives me an excuse to be who I am. And if people think it's great acting, it works for me, " she said.
"Do Knot Disturb" is also Lara's third film with Govinda after "Bhagam Bhaag" and "Partner".
"I am very lucky to have got this film because if at all I consider myself to be a comic actress, then working with Govinda at least once is necessary. But I have had the opportunity to work with him for the third time and our fourth film ('Banda Yeh Bindaas hai') is also ready, " she said.
"He is a fantastic actor and and I got an opportunity to grow as a comic actor with him. He is one of those actors who can make people cry with his laughter and at the same time make them laugh with his crying, " she added.
With other future projects like "Blue", "Housefull" and "Tom & Jerry" in her kitty, Lara is on a high with the way her career is shaping up.
"I am very happy. It's a good time and good place where I am right now, " she said.