Over 1200 people danced for three minutes on the song, led by Malaika. The event was organised by Indian Film festival 2011 director Mitu Bhowmick Lange to promote Bollywood Down Under.
The song was played at Melbourne Park in Australia on weekend with over 1200 people dancing together. Malaika received a certificate for setting the record on Sunday.
Lange said: "It's been amazing to see such a large crowd has come together and danced with same steps on this exciting number. " The earlier record was set in Singapore when over 1008 people danced for a song.
Malaika was accompanied by her Bollywood star husband Arbaaz Khan and her son. The gala evening was also attended by Vidya Balan, director of 'No one Killed Jessica' Raj Kumar Gupta, director Kabir Khan and Pakistan pop singer Ali Zafar.