The director's daughter, who debuted with "Student of the Year", has become one of the most sought after young actresses in Bollywood within a short span.
"My daughter and me are two different entities. She has a narrative of her own. She is a star ... Therefore I don't see the reason why we should for commercial reasons join hands to make a film together. I don't see that," said Bhatt.
The filmmaker was in the city to participate in the "Self V Film" Festival, which showcased an overwhelming number of cancer survivors share their story of hope.
"I have no aversion to stars, but I feel it challenges me more when I make film with new people and I feel that I enjoy creating destinies, more than creating movies," he said.
Bhatt, 66, has launched a number of faces in Bollywood including former adult star Sunny Leone, who was recently criticised by CPI leader Atul Kumar Anjan for endorsing a condom ad.
"He (the leader) has apologised for saying what he has said ... So the matter is dead, dead for me," Bhatt said, adding politicians indulge in such unpleasant remarks against celebrities to get news space.
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