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In May 2010, Gustad was found guilty of negligence leading to the death of Nadia Khan, an assistant producer working on the set of his film Mumbai Central. Khan was struck by a train near Mumbai's Mahalaxmi station during shooting in May 2004.

At the age of 18, Gustad left home and started traveling to different parts of the world. He kept a diary on his travels and called it "Of No Fixed Address," in reference to the fact that he had no fixed address for three years. He used this diary as the basis for his book of short stories entitled Of No Fixed Address, which was published in 1998.

At 28, Gustad wrote and directed his debut feature film Bombay Boys. It starred Naseeruddin Shah, Naveen Andrews and Tara Deshpande among others. It was a break out commercial and critical cult success, paving the way for independent cinema in India. It also travelled to several film festivals worldwide and premiered at the Toronto Film Festival in 1998, followed by the Vancouver and London Film Festivals. The film was nominated for best film at Verzaubert, Berlin.

Gustad dated Miss World Diana Hayden in 1998, during the release of Bombay Boys. In January 2004, he married Alexandra Ritt, an American woman. He has two sons, Zahaan and Zakary.

Kaizad Gustad (born 1968) is an Indian film director and writer based in Mumbai, India. He is best known for his 1998 comedy Bombay Boys. In his career as an author, he has also written three books, Of No Fixed Address published in 1998 by Harper Collins, The Road to Mandalay and 7 Storeys.