The 1992 bomb blast convict held guilty under the Arms Act for possessing illegal weapons, was to perform along with 50 other Yerawada jail inmates in the show at Balandharva auditorium.
State Prison Department Chief Meeran Borwankar said the programme would be held after a few days as there was a "a lot of positive energy" generated among the inmates drafted for the event.
She, however, did not give any details of security reasons that led to the postponement of the programme, expected to be be attended by Maharashtra Chief Minister Prithviraj Chavan and Home Minister R R Patil.
Dutt was expected to take part in a skit delivering some dialogue lines from his "Munnabhai" movie in addition to a song and dance sequence.
Activists of Hindu Rashtra Sena staged a demonstration in front of the venue condemning prison administration for "glorifying" those guilty of anti-national crimes.
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