He was arrested, along with his assistant director Ashish Udeshi, over the death of his British assistant, Nadia Khan, who died on May 25, 2004 while filming a movie in India. She was hit by a train on a train track which was out of bounds for the production. Kaizad Gustad urged his film's crew members to report the death as a road accident but later one of the crew confessed to police and he was arrested. If convicted, the pair could served up to three years in prison.