Bollywood actor Saif Ali Khan has been charged with assaulting two fellow diners at Mumbai's Taj Mahal Palace hotel, police said on Wednesday.

Khan, 41, and his friends are accused of assaulting South African businessman Iqbal Sharma and Sharma's father-in-law after an argument on Tuesday night.

Police said Sharma suffered a broken nose and his father-in-law was also injured during the scuffle.

Sharma said he complained to the restaurant manager that Khan's group was making too much noise, which annoyed the actor.

"He said you are an idiot. Don't you know who I am? If you want peace and quiet, go to a library," the South African businessman told Times Now television.

Actress Kareena Kapoor, Khan's girlfriend, was also dining with him at the hotel.

On Wednesday evening, Khan was briefly arrested before being let out on bail.

In a statement, the actor said he had been to the police station as required by law but had filed a complaint himself.

"There was an ugly incident last night where my friends and the ladies with us were abused and I was assaulted," Khan said.

"I was hit and I defended myself," he said. "I don't think any gentleman would have behaved differently."