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Varun is a son of film director David Dhawan and Karuna Dhawan. He is the younger brother of director Rohit Dhawan, who made his directorial debut with the 2011 film, Desi Boyz. He is also the nephew of actor Anil Dhawan and is the cousin of actor Siddharth Dhawan. He has a degree in Business Management from the Nottingham Trent University, United Kingdom.