The delay in the release is due to some financial problems between the makers of the movie and financiers.
"Talks are going on between the producers and financiers. The film is likely to release in the evening," a source from the film's unit said.
Produced by Thirrupathi Brothers, the film is being distributed worldwide by Eros International. Apparently, the film's producers Thirrupathi Brothers owe Eros International nearly Rs.5 crore.
The film's shows have also been cancelled in Karnataka, Andhra and Telangana.
Directed by Ramesh Aravind, the film features Kamal Haasan as an 8th century artist and modern-day superstar.
Earlier, the VHP had condemned Kamal Haasan and demanded a ban on the film. It also said that if the film was released in cinemas on Friday, the whole Hindu community will be put to shame.
In a petition filed with city police, VHP city organiser Satyamurthy said the incarnations of Lord Vishnu has been criticised in the movie.
In a song that begins as "Udirathin Kathai," in Tamil folk style "Villupattu", conversations between Vishnu devotee Prahalada and his father Hiranyakashipu has ‘disparaging' remarks against Lord Vishnu, he said.
In their statement to the commissioner of police on Monday, the group alleged that the song ‘Iraniyan Nadagam', about the disparaged conversation between Prahalad and Hiranyakashipu, will hurt the sentiments of Hindus.
Later, the petition by the VHP was dismissed by the Madras High Court.
(WIth inputs from agencies)