Pervez Ahmed Tak, who's now in police custody and is alleged to be a family friend, said she was murdered together with her family in Mumbai, reports said.
Laila's mother Saleena Patel, sister Azmina, brother and a cousin were missing together with her from Mumbai since Feb 2011.
Her father Nadir Patel, who was divorced from her mother who had remarried, had filed a police complaint.
Laila Khan is a Pakistan born actress and had acted opposite Rajesh Khanna within the 2008 Bollywood movie Wafa: A DANGEROUS Love Story.
Laila had married Munir Khan, a member of the Bangladeshi terror outfit Harkat-ul-Jihad al-Islami, reports said.
Laila's husband is with reference to gangster Dawood Ibrahim, consistent with reports.
Maharashtra Anti-Terror Squad (ATS) had suspected Laila Khan of getting links with the Pakistani spy agency ISI and the phobia group Lashkar-e-Taiba (LeT).
Laila's SUV was allegedly used for carrying explosives that were utilized in a blast before the Delhi High Court in Sept last year.
