Kaagaz is based on the real life of a farmer named Bharat Lal also known as Lal Bihari from a small town in Bihar. He struggled for 18 years to establish his identity. It took him 18 years of legal battle to establish his identity and to acquire his land and property legally.

"After reading the first draft of the (film's) script without hesitation I agreed to step into the shoes of Bharat Lal. While reading the script I could easily relate the trauma and hardships Bharat Lal could have gone through for 18 years. Like Bharat Lal, I too struggled for 14 years to make my own identity in Bollywood," Pankaj said in a statement.