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.
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.
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.