Bhagam Bhag features a character whose effeminate mannerisms are a recurring source of comedic ridicule. This portrayal relies on harmful stereotypes, contributing to a negative depiction of gender non-conformity without any counterbalancing positive elements or critique.

Bhagam Bhag features a central plot twist where a character is revealed to be a post-operative transsexual woman. This revelation is primarily used for comedic shock and disgust, with male protagonists reacting negatively. The film leverages the character's transsexual identity as a punchline, contributing to a problematic portrayal that lacks dignity or empathy.