Rock the Shaadi centres on a Punjabi wedding which is taken over by zombies.
Producer and lead Deol told Mid Day: "The film is not happening because the co-producer [Siddharth M Jain's iRock] messed it up. There has been all kinds of news about the state of the film. But anything not attributed to me is false. I don't know what they are going to do now.
"Both producer Ekta Kapoor and me really want to complete the film. I have suffered a lot because of this. It is really sad. Forty minutes of the film are ready and it is looking really good. The film has everything that a commercial potboiler needs."
He added: "iRock don't have enough experience to produce a film."
Deol has previously said that he was not keen on making a zombie movie before he saw the script by director Navdeep Singh.
It was reported in September that he and Saif Ali Khan are in competition to make the first mainstream Bollywood zombie film.