"Mogul" co-producer Bhushan Kumar said Wednesday that Kapoor has been sacked from the job.
"With the ongoing proceedings against the director that is brought to our notice, everyone at T-Series has decided to not work with the director," Bhushan said in a statement to PTI.
Reacting to Khan's announcement, Kapoor told PTI, "I understand and respect Aamir Khan's and Kiran Rao's decision. Since matter is sub judice, I intend to prove my innocence in the court of law."
Actor Geetika Tyagi, who has appeared in films like "One By Two", "Aatma", "What the Fish", has accused Kapoor of molesting her.
In April 2014, Tyagi had filed a complaint with Versova police station alleging that he tried to rape her two years ago. Following which, Kapoor was arrested and let out on bail after paying a sum of Rs 10,000.
In 2014, a video, which was apparently taken with a hidden camera had Tyagi, Kapoor and his wife in it. In the video, Tyagi is seen slapping Kapoor, which the aspiring actor had put on social media[Watch video below!].
The director, best known for "Jolly LLB" series, questioned Tyagi's motives of sharing the video on the internet.
"... But I do want to raise a question - is secretly filming a crying woman without her consent and knowledge and uploading it on social media not harassment or abuse? Or is it fine if she is related to someone who is 'allegedly accused' of misconduct. If your answer is latter then for me it's nothing less then a khap panchayat mentality," he said.
Geetika had shared the video then, saying - " confession of the sexual abuser #courage #speakout #subhashkapoor
#slap #molesters #Mard #Shameless".
Geetika also lauds Aamir's move of stepping away from the film in her tweet she posted on Wednesday. She wrote - "This is COMMENDABLE and this is the kind of support we want so that more and more women can come out. Thank you @aamir_khan thank you #KiranRao #TimesUp #MeTooMovement".
Just a day before this, she had mentioned about Aamir working with Subhash in the upcoming film, addressing her tweet to superstar's wife Kiran Rao.
She wrote- "Although @MumbaiFilmFest hs disassociated itslf frm directors&producer whose names have come out in #Metoo movement but I hope its chairperson #KiranRao remembers tht @aamir_khan her husband hmslf is working wth #subhashkapoor who’s being prosecuted for sexual assault&molestation"
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In a joint statement, Aamir and filmmaker-wife Kiran Rao had also said, "At Aamir Khan Productions we have always had a zero-tolerance policy towards sexual misconduct and predatory behaviour of any kind."
They said they were committed to making the industry a safe place.
(With inputs added in PTI copy)