The election commission decides to hold the release of the biopic movie based on Prime Minister Narendra Modi.
Mr Modi's ruling Bharatiya Janata Party (BJP) had said earlier stopping its release would be against freedom of expression. Its trailer released last month brought a furious reaction from the opposition.
The Election commission said the film, which contains fictional elements, have a "serious threat" to ensuring all candidates get equal opportunity for an election campaign.
It said such biopic "may create an impression of the truthfulness of content" and could therefore not be displayed on any electronic media or at the cinema.
It also said that posters or publicity material for the film that depicted any of the candidates also had to be removed.
The EC decision comes despite India's censor board clearing the big budget movie for release with "four or five minor changes".
The BJP said it was not involved, but lead actor Vivek Oberoi is a noted Modi supporter
Shah Rukh Khan feels the attitude towards women is changing for good in India. The Indian superstar says there are lots of positive developments for female actors in the film industry.
The actor expressed his views on the changing gender dynamics in the Indian entertainment industry in an interview to BBC Asian Network. He was in London to receive an honorary doctorate in philanthropy from The University of Law, London.
“The roles of women and the kind of attitude you have at the workplace for women is changing for positive,” Khan said in the interview. “There will be discrepancies and ups and downs too. There were times when I was working in the 1990s that if a lady got married, she normally did not have the opportunity to come back and act in a film. “
“But now they are married and acting in films and it’s so seamless and nice, so I think lots of positive stuff for female actors in the film industry,” he added.