Rumour mongers went to the extent of creating a Facebook page for the actor "RIP Kader Khan" and fans posted heaps of condolence messages using the micro-blogging site Twitter.
However, the 77-year-old is in good health and has urged the gossip mongers to stop spreading such frivolous rumours.
"My family is extremely upset about it. They are very worried. All this has shaken my family. Whoever is spreading such rumours, please stop it," Kader told IANS.
"Ek din toh sabko jana hai aur main aap sabki duayein lekar jaunga, (one day everyone has to die and when I'll go, I will go with your blessings). Right now I am completely fine," he added.
Kader is a well known name in Hindi cinema having wrote scripts and dialogue for many besides acting. He has donned all kinds of roles from negative to memorable characters.
In his career spanning almost four decades, he has worked in over 350 films, and some of his most memorable films include, "Coolie", "Hum Hain Kamaal Ke", "Baap Numbri Beta Dus Numbri", "Bol Radha Bol", "Aankhen", "Raja Babu", "Dulhe Raja", "Judwaa" and "Taqdeerwala".