Preeti Jain, who appeared to be an aspiring actor, had accused Madhur Bhandarkar of sexually exploiting her promising marriage and lead roles in films some seven years back.
She had even brought rape charges against Madhur and the accusations had created a sensation back in 2004.
A lower court has now moved to initiate proceedings against the filmmaker in the case, emboldening Preeti Jain who said she stood vindicated.
Madhur in a press release said: "As the lower court has issued a process against me today, 19th September, 2011, for a case which has been going on for 7 years, I would like to state here after reading the judgment that we will challenge this order in higher courts and seek justice."
"Initially, on 12th July 2004 complainant had sent a legal notice to me stating if I don't cast her in my film as the leading lady within 48 hours of the legal notice served then she would adopt necessary criminal and civil legal proceedings against me by lodging a police complaint and complaining before the Hon'ble Court of Law against me for cheating, cohabitation caused by a man deceitfully inducing a belief of lawful marriage and criminal intimidation, " Madhur, known for his socially relevant films, said.