Khan, who has lent his voice to numerous Bollywood hits like 'Lagan lagi...', 'Jiya dhadak dhadak jaaye' and 'Bol na halke halke', was to perform at the concert on Saturday but after he failed to make an appearance, the organisers lodged a complaint against him.
According to organisers Trzy Event, they paid Rs 27 lakh to the singer for the show and had already sold 800 tickets worth Rs 20 lakh besides other expenses.
"We have filed a case of fraud in Gurgaon sector 29 police station. We have suffered a huge loss due to this last minute cancellation. I can't believe that Rahatji, who is a regular in Mumbai and is shooting a reality show there failed to obtain a visa," organiser Dishant Badlani told PTI.
"We are now going to refund the tickets." DCP Vikas Arora said that they have received the complaint and are looking into the matter and, if needed, an FIR will be filed.
Khan's Mumbai-based manager Chitresh, who had arranged for the event on his behalf, claimed the singer and his entire troupe were ready in Karachi to fly via Dubai but missed the flight as they could not get their visas. He said Khan was ready to perform on a later date but the organisers did not agree to it.
Khan, nephew of legendary Sufi singer Nusrat Fateh Ali Khan, is currently judging a music-based reality show 'Chotte Ustaad 2' on Star Plus.