The Mission: Impossible actor was replaced by Karisma Kapoor, according to The Times of India.
A source told the paper: "We were told that Anil would need two first class tickets in a good airline to fly in and fly out of Dubai. We were also told that he will need a presidential suite to stay in.
"We were told that the rooms must have connecting doors. Also they asked for three security guards. And smaller requests for luxury cars and more.
"We wrote back saying as much as we would love to have him on board, we will not be able to afford him. He couldn't attend the awards function ultimately."
Kapoor has previously claimed that he has already established himself in Hollywood with his high-profile films.
He also said that working abroad in the US taught him how to be a "professional".