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Khanna was forced to declare the obvious after greatly exaggerated rumors of his death by suicide flew through India's film industry.
"This is really absurd and an irresponsible rumor," Khanna told the Times of India newspaper in an interview published Friday.
According to Khanna the story probably spread after he stopped taking calls recently after he developed a throat infection and lost his voice.
"I would like to assure all my well-wishers that I'm fine. Don't believe all these silly rumors," said the actor, who comes from one of Bollywood's best known families and is thought of as an up and coming actor. He has starred in "Bollywood/Hollywood" and "Earth: 1947"
His father, Vinod Khanna, was a popular action hero in the 1970 and 1980s, starring in about 120 Bollywood movies before trading the big screen for politics six years ago. He has since served as a Cabinet minister and managed to make a movie, "Deewanapan," or "Madness in Love."
His elder brother Akshaye Khanna is known for playing strong character roles and won praise for his comedic parts in two recently released movies, "36 China Town" and "Shaadi Se Pehle," or "Before Marriage."
India's prolific mass market film industry, referred to as Bollywood, is based in the country's commercial capital Bombay, also known as Mumbai.