Sai Paranjpaye had a real hatred for director Basu Bhattacharya. This was due to Basu being on the the censor board and not passing Sparsh. So to get even with Basu,she named a fraud character named Basu in the film. Basu Bhattacharya argued that Katha was not passed by the censor board for 6 months. It was his vote that passed the film eventually. So he had no problem with Sai.
Naseer was doing Farooq character and vice versa ....later the roles were reversed
Naseeruddin Shah admitted that Farooq scored over him in the film. He had a better role and was more livelier.
The film was originally titled "Kachua Aur Khargosh".
Deepti Naval created major problems for Sai Paranjpye during Chashme Baddoor. Sai vowed never to work with her again. Deepti apologised and was back in Katha. But once again she reported late to the sets causing delays in the production of the film.