Kasturi Nivasa was originally scripted for thespian Sivaji Ganesan, according to Bhagavan who along with Dorai directed the film. But, he refused to act in it because of its tragic ending.
Dorai-Bhagavan purchased the rights to the film for Rs. 39,000 and produced the film under Anupama Movies, funded by K.C.N. Gowda in 1971. After a couple of days of shooting, Mr. Gowda decided to make the film in colour and asked to stop the shooting. However, Dr. Rajkumar and the director duo convinced Mr. Gowda that it would be difficult. The total cost of the project at that time was Rs. 3.75 lakh. However, after the success of the film, Sivaji Ganesan bought the rights to remake Kasturi Nivasa in Tamil as Avanthan Manithan , released in 1975, for Rs. 2 lakh.
Bollywood too followed suit. The rights were bought for Rs. 4 lakh and the film was remade in Hindi as Shandar starring Sanjeev Kumar, which was released in 1974.
