Razdan was born in Birmingham to a German mother and a Kashmiri father. Razdan attended acting school in London and moved back to India to pursue an acting career. She has two siblings, former movie and stage actor Karan Razdan (widower of the late TV star Priya Tendulkar) and former model Tina Razdan (of the now defunct cool drink "Thrill" fame, where she plays a female astronaut along with Sunil Shetty).
Razdan appeared as Sulochana in the hit TV series Buniyaad.
She has acted in numerous Bollywood movies and has been a regular on Indian television.
Razdan is married to prominent director Mahesh Bhatt. She lives in Mumbai with her husband Mahesh Bhatt and her two daughters, Shaheen Bhatt and Alia Bhatt.