The controversy erupted after Karan Johar's 'Ae Dil Hai Mushkil' ran into a storm of protests led by MNS because Pakistani actor Fawad Khan has a role in it.
The film has been allowed to be released after its producers met with three conditions put forward by MNS chief Raj Thackeray, including payment of Rs 5 crore to Army Welfare Fund.
He said the army is "upset" over being dragged into this politics.
"The army is completely apolitical. It is wrong to drag the force into politics," another army official said.
"(We) would never support it," Lt Gen Syed Ata Hasnain (Retd), former military secretary, said when asked if he supports the move of the MNS.
"Why should the armed forces be made a part of this extortion? By accepting this money they would become a 'receiver' of tainted money," tweeted Air Vice Marshal Manmohan Bahadur (Retd).
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