 After enjoying big hits like "Main Tulsi Tere Aangan Ki" (1978) and "Dostana" (1980) with Amitabh Bachchan, Zeenat Aman and Shatrughan Sinha, Khosla ran into some rough weather as his other films started flopping.A dispirited Khosla took refuge in alcohol and died in Bombay on 9 June 1991, totally disillusioned with the film industry.After his death "The Raj Khosla Foundation" was established by his daughter Sunita Khosla Bhalla, with Shatrughan Sinha, as its chairman, and members like Manoj Kumar, Moushumi Chatterjee, Kabir Bedi, Mahesh Bhatt, Amit Khanna and Johny Bakshi.