Thackeray's association with movies and film stars goes back a long way. It would seem appropriate if Bollywood paid homage to him by basing a major film around his life.
Varma chuckles at the speculation surrounding the film that has Amitabh Bachchan in the title role.
"Amitabh Bachchan's character is based on someone real. That's for sure," tells Varma told.
"If a man like Bal Thackeray can evoke the respect, awe and fear of thousands of people to the extent that they are ready to lay down their lives for him, irrespective of which political party he belongs to, then yes, 'Sarkar' is also a man who evokes the same passionate loyalty from the people around him."
While Varma is quick to add that in other respects the plot is fictional, he revealed that Bachchan plays "the opposite of Mahatma Gandhi".
"What Gandhi achieved for the people through non-violent means, Bachchan's character Sarkar achieves through violence. In 'Sarkar', Bachchan plays an incredibly self-righteous man.
"He does what he believes in regardless of society or law. He makes his own rules of right and wrong. He's hugely charismatic and people go to him with their problems."
Varma said the roles of Amitabh Bachchan and his son Abhishek were inspired by those of Marlon Brando and Al Pacino in "The Godfather".
After a thought, Varma added: "I think Mr Thackeray will be very happy with 'Sarkar'. I've written the character for my childhood hero. If Amitabh Bachchan is playing the role, how can it not be heroic?
"I don't think the audience will want to see Bachchan in a negative light. At least, I wouldn't. 'Sarkar' is about a junta's hero. Bachchan plays a hero of the masses. I've essentially built on the Vijay persona that Salim-Javed wrote for him in the 1970s."
For further shocks, the maverick director revealed: "Personally I don't like seeing Bachchan in a film like 'Black'. For me he's a superstar. I'm not interested in seeing him as an actor.
"I want to see him larger than life. If 'Zanjeer' and 'Black' had been released at the same time, I'd have preferred to see him in 'Zanjeer'."