He is best known for his social film Albela (1951) and the songs "Shola Jo Bhadke" and "O Beta Ji O Babuji Qismat Ki Hawa Kabhi Naram".

Because of advice from Raj Kapoor, he turned to making a social film called Albela, starring Bhagwan and Geeta Bali, and featuring music by his friend Chitalkar, or C. Ramchandra.

After that, Bhagwan did not have any more hits and eventually had to give up producing and directing films, and sold his 25-room waterfront bungalow in Juhu and his fleet of seven cars (one for each day of the week).

[5] He took whatever roles he could get, but apart from Jhanak Jhanak Payal Baje (1955), Chori Chori (1956) and Gateway of India (1957), none were roles of note, and he eventually took on bit parts in which he did his famous dance (made even more famous by Amitabh Bachchan using it as his default dance step).

Most of Bhagwan's associates left him in his time of need, apart from C. Ramchandra, Om Prakash and lyricist Rajinder Krishan, who continued to meet him even in his chawl.