The film was banned by CBFC as the film contains a heavy use of abusive language and some derogate references to Hindu deities. However, a preview copy of the film was leaked online by the film producers itself.
The film was to release in January 2012 .But was banned by censor board for almost 6 years.
The film is loosely based on Dr. Kashi Nath Singh's popular Hindi novel Kashi Ka Assi, a satire on the commercialization of the pilgrimage city, and fake gurus who lure the foreign tourists.
On 30 June 2015, the release of Mohalla Assi was stayed by a Delhi court for allegedly hurting religious sentiments.Prior to its release Mohalla Assi leaked online on 11 August 2015.
Sakshi Tanwar known to play typical house wife roles plays a housewife. But for the first time her character will be abusive using abusive languages.
This was suppose to be Sakshi Tanwar first big role on big screen.As the film got delayed for years she got a major role in Dangal 2016.
Film got cleared by Dehi High Court on 11 December 2017 with one cut and an A certificate.
Sarvajan Jagruti Sanstha had launched an FIR at Varanasi police station against Sunny Deol and Director Chandra Prakash Diwedi for hurting religious sentiments.