"The issue of foreigners in Bollywood is about the genie in the bottle," tells filmmaker Mahesh Bhatt told. "Once you've let the genie out of the bottle, you can't put it in. But you can certainly control it."
Bhatt recently hired South African actress Illene Hamman for "Rog" and had to negotiate with authorities to get a work permit. "It was a torturous experience," said Bhatt.
"We had been given a J visa by the Indian embassy in Pretoria which, we were told, allowed Illene to do any media work in India.
"But the authorities here demanded a separate work permit and we really had to fight it out. It was a huge battle, but we also realised the importance of getting papers in order."
An Iran-born Norwegian citizen, Khan was deported earlier this week when the Foreigners Regional Registration Office (FRRO) found that she had only a visitor's visa and no work permit.
As Bollywood becomes bigger on the global stage than ever before, more and more actors are thronging the shores of Mumbai for opportunities and fame.
Among the prominent foreigners now working in Bollywood are Pakistani-Canadian singer-composer Adnan Sami, who has been working here for more than five years and Katrina Kaif, who has a British passport.
"There is no problem as long as you are scrupulously careful about your papers," said Sami. "Since more and more people will come in, the process will be smoothened out."
Then there are actors who spent a few months in India for a film -- like Rachel Shelly in "Lagaan" and, more recently, Antonio Bernath in "Kisna".
Czech model Yana Syncova even married Pune-based artist Satya Gupta and has now settled as an integral part of the entertainment industry and one of India's highest paid models.
Thai singing sensation Tata Young sizzled in last year's mega hit "Dhoom" and Australian reality TV star Tania Zaetta will perform in the upcoming "Bunty Aur Babli".
Some like British actress Sophie Dahl (in "King of Bollywood") have worked in Indian films but only shot abroad.
Bhatt who is now getting Pakistani actress Meera for "Nazar" said the Negar Khan controversy was a mixed blessing.
"It has made producers and actors more conscious of the law. But I still deplore the manner in which the whole thing works as if the police are gleeful that a celebrity has got into trouble."