The film will see Sara opposite Sushant Singh Rajput.
The love story, set against the backdrop of Kedarnath, will be directed by Abhishek Kapoor.
Along with Balaji Motion Pictures and Guy in the Sky Pictures, KriArj Entertainment has partnered with T-Series.
"'Kedarnath' is a very prestigious film. It's a love story set in the land of Shiva, of whom, I am strong believer. My devotion towards Lord Shiva is utmost and this further makes this film very special," Bhushan Kumar said in a statement.
The film marks the reunion of Sushant with Kapoor as they have previously worked together on the actor's debut film "Kai Po Che!".
"Kedarnath" is expected to arrive in cinemas in the summer of 2018.
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