Actor Siddique who was one of the main lead in the movie In Harihar Nagar (1990) approached Lal to make a sequel, but he didn't consider it seriously. At that time Lal happened to attend his own school reunion function, and he was amazed by the experience. He then wanted to reunite with his cast members from the original film, and planned to make a sequel.
Director Lal directing a movie after 16 years. 2 Harihar Nagar (2009) is the first sequel he directed and second sequel he scripted. The first sequel he scripted was for Mannar Mathai Speaking (1995) which he didn't direct but was a sequel to his debut movie Ramji Rao Speaking (1989).
In 2004 director Jose Thomas originally wanted to make a sequel, but the plan got dismissed because no producers were willing to make a movie where main leads are of 40 year old aged actors.
Lal was unable to contact music director S. Balakrishnan who was the composer of original movie. So he gave music department for another composer Alex Paul and went for remixing the original songs. This disappointed S. Balakrishnan and remarked this incident in a TV interview. Soon Lal approached the TV channel for his contact number and phoned him, excused for his action.