Harbhajan Singh will not face any action over claims he allegedly made racist taunts to sections of the crowd in Sydney during the first match of the CB Series finals against Australia on Sunday.
Match referee Jeff Crowe investigated the allegations but decided not to take any action against Harbhajan.
There were claims the off-spinner had made monkey gestures and spat at sections of the crowd, but today Crowe released the following statement: "I have investigated the alleged incident with Cricket Australia's ground security officials after reading newspaper reports and viewing related photographs that have been published.
"After reviewing all available information, I conclude that there is no need to take any action against Harbhajan Singh."
India were adamant Harbhajan had not done anything wrong.
"He did nothing," India manager Bimal Soni told BBC Sport.
"These stories, I do not believe them and strongly condemn them. I think it is wrong.
"Nothing has been done like that, they are making a mountain out of a molehill."
Former Australia skipper Allan Border came out in defence of Harbhajan and said: "I am not too sure how serious it is.
"I mean I was at the ground yesterday and I was on that side of the ground and Harbhajan was copping a fair bit of stick from the crowd.
"I didn't notice any gestures at all and I thought he handled himself quite well to be quite honest."
Harbhajan was banned for three matches after he was found guilty of racially abusing Andrew Symonds but the suspension was subsequently overturned on appeal.