The horror flick by Bernard Rose manages to spook Varma.
"I remember the first time I had seen the film in one part, I had switched it off in the first half hour. Then I went to the mirror and said Candyman four times. But couldn't get myself to say it the fifth time because I got scared that what if Candyman really comes," Varma said in a statement.
His latest horror film "Bhoot Returns", a sequel to his 2003 movie "Bhoot", is set to release Oct 12. He says he believes more in ghosts than in god.
"I believe in ghosts a little more than I believe in god because at least I have felt the fear of a ghost, but I have felt nothing when it comes to god," he added.
Varma has hardly ever used a caricaturish ghost in any of his films. He has always infused fear with an unsaid and unseen presence.
"Fear is in our mind. I like to put people in a theatre, switch off all the lights and lock all the door and scare them. I really love scaring people," he added.