The filmmaker had shown a 15-minute special clip of "Bhoot Returns" to a specific section of the trade recently and after getting a positive response, he has decided to make the third instalment.
He has found a unique way to churn out a story. Child artist Alayna Sharma, who plays Nimmi in "Bhoot Returns", has shot for a special video in which she asks everyone to share a story which has any paranormal occurrence and that can qualify as a story for his new film. The stories can be sent through Twitter and Facebook.
"'Bhoot 3' was always on the agenda for me. As much as I like to scare people, I also know that people like to be scared. I am sure that there are enough stories out there to be shared when it comes to the horror. I am waiting to read the most unusual one," Varma said in a statement.
The winner's story will be the screenplay of "Bhoot 3" and he or she will get to spend a day on the sets of the film with Varma.
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