Ali is the second of the eight children of the popular Bollywood actor, Mehmood. His mother Mahelaka, was part Bengali and part Pathan, the sister of a popular Indian actress of the 1960s – Meena Kumari. The Bollywood actress and dancer, Minoo Mumtaz, is his paternal aunt. He attended Manekji Cooper (Kindergarten) (Juhu), Bombay Scottish School in Mumbai, Hampton Court in Mussoorie, St. George's College, Mussoorie and the Bishop Cotton Boys' School, Bangalore.