Luke Pomersbach's family believes that he is the victim of a sting operation, as American national Zohal Hameed, who had alleged that the Royal Challengers Bangalore player had molested her at a five-star hotel in New Delhi, has dropped all charges.
Hameed's lawyers said both parties have reached an out of court settlement.
RCB's Director Sidhartha Mallya tweeted late on Wednesday night: "So glad that all charges have been dropped and Luke can return Down Under A FREE MAN!"
"The fact of the matter is that Luke has been caught up in a definite scam or a sting, whatever you want to call it," Luke's father, George Pomersbach, told The Age.
Australian sources connected with the Royal Challengers Bangalore, Pomersbach's franchise in the Indian Premier League, also believe he was set up.
Pomersbach, the former West Australian and one-time Australian batsman, is alleged to have grabbed and tried to kiss a woman, and then beaten up her partner when he intervened, during a late-night drinking session at a New Delhi hotel.
Pomersbach, a talented and powerful top-order batsman, has had a career overshadowed by off-field problems.
He has been suspended on several occasions for disciplinary and drinking incidents, and pleaded guilty to assaulting a police officer after two hit-run accidents while driving drunk in 2009.