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Rajinikanth and Kamal Haasan’s Thalaivar 173 has sparked controversy since its announcement. Initially, Lokesh Kanagaraj was signed to direct the film, but later he stepped away. At a recent press meet in Chennai, the filmmaker explained that he made this choice purely due to creative differences and a clash in genre expectations, and not because of the response to his earlier work.

Addressing the media, Lokesh Kanakaraj allegedly said, "I want to clear a few things about the Rajinikanth-Kamal Haasan film, as I faced a lot of criticism for it. I met both of them around the time of Coolie’s release. They told me they wanted to do a film like this."

He added, "It was a huge opportunity for me. I felt honoured that two legends, who were coming together after 46 years, asked me to direct the film. However, I was committed to directing 'Kaithi 2' at that time. So, I informed the 'Kaithi 2' production team that I wanted to complete this project first, as I did not know if I would ever get such a chance again."

Lokesh also shared that he spent over 1.5 months working on the script before later discussions with the two actors changed the course of the project. He explained that both Rajinikanth and Kamal Haasan wanted to try something lighter after doing several action-driven films.

He further said, “Both stars have been constantly doing action films. Rajinikanth sir has done action films right up to Jailer 2. Kamal sir’s upcoming film, directed by stunt choreographers Anbarivu, will also be action-heavy. Their question was, 'Should we do another action film without taking a break?' They wanted a light-hearted film, and I understood that. However, I cannot do light-hearted films. I honestly told them this and decided to step away from the project.”

Thalaivar 173 has become one of the most eagerly awaited projects, mainly because Kamal Haasan is producing a Rajinikanth film again after several decades.

After Lokesh’s exit, the makers first announced Sundar C as the director, but he later exited the project, explaining that "unforeseen and unavoidable circumstances" had compelled him to step away.