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Second half of 1986 and first half of 1987 wasn’t a good period for Mammootty as flops became an habit in Mammootty’s career. Th situation was too worse for him as new offers dried up. But Joshiy still believed in the potential of Mammootty and he was impressed by a Dennis Joseph script about a cartoonist waiting for revenge on a powerful politician and his aide. Delhi was the major location for this story. The script never had a romance or comedy or song and as expected it was rejected by 9 producers and some of them was ready to produce the film if Mohanlal plays the hero.
Fortunately for Mammootty, the 10th producer Joy Thomas of ‘Jubilee Productions’ decided to produce the film and the pre-production of the film started. TG Ravi was supposed to play CR Panicker, but he politely refused because he stopped doing negative roles, So Jagannadha Varma was penciled in. Devan played Politician Shankar. Thampi Kannanthanam recommended actor Siddique while Vijayaraghavan was chosen by Joshi himself. Other major roles were played by Mohan Jose, Sumalatha, Urvashi and Suresh Gopi.
Apart from Mammootty’s GK, there was one more important role in the film and that was ‘Salem Vishnu’, a convict sentenced to death by hanging. The team wanted Tamil actor Sathyaraj to play that role, but Sathyaraj was busy with his other films so the team brought in actor Thiagarajan for the same role. The shooting of the film started on republic day 1987 at Delhi with Jayanan Vincent being the cinematographer. The entire portion of the film was completed within 21 days and the film was released on July 24, 1987.
Mammootty and Joshiy were at Kashmir for the shooting of ‘Nair Saab’ when ‘New Delhi’ was released and Mammootty was really nervous waiting for the result of the film as he knew it was his last chance to survive in the industry as ‘Nair Saab’ produced by PKR Pillai then too was facing financial issues. Finally the news reached Mammootty that ‘New Delhi’ film has been unanimously accepted by the audience and it has been declared as a blockbuster. Hearing this news, Mammootty lost his control and started crying louder as he was hugged by Joshiy and team. ‘New Delhi’ went on to become the biggest Malayalam hit till then. The film helped to stabilize the career of all associated with the film. ‘New Delhi’ also completed 100 days at Safire Theatre, Chennai.