"The news of the fine on her has come as a shock. When an Indian newspaper published it, the Pakistani authorities denied it but I have just been told by the actress that the fine stands," tells Bhatt.
"The objective behind my movie 'Nazar' is to strengthen relationships between the two countries and that should be appreciated," he said.
"But if what's being described as a kissing scene is so much of an issue, I am willing to even remove the scene from the film."
"Nazar" is scheduled to be released in India in May.
Scenes involving Meera, one of the leading actresses from Pakistan, and co-star Ashmit Patel have been attacked in Pakistan as indecent. Meera claims she and her family have even received death threats.
"Nazar", according to Bhatt, is the "first India-Pakistan production".
"Any obstruction would mean that some people are conspiring to create impediments in my efforts towards building new relationships," he said during a visit to promote his next film "Zehar".
Soni Razdan, the director of "Nazar" and Bhatt's wife, has shot off a letter to Pakistan President Pervez Musharraf, urging him to review the fine.
Meera has told Bhatt that she too plans to write to Musharraf.
"All that I have shown is the character (Meera's role) receiving a peck on the neck by her lover," Bhatt said.
"The manner in which some people have suddenly taken a high moral ground and the whole issue has been blown out of proportion only reflects their double standards."