Aspiring actress Preeti Jain reportedly filed a charge of rape against the Heroine director nine years ago after he refused to give her a lead role in his films, NDTVMovies reports.
In a statement, Jain said: "We had sex 16 times and Madhur made promises of giving me a lead role in his films. However, he didn't offer me a lead role in any of his movies. At times when I refused, he raped me."
In 2006, police investigating the case argued that Jain's allegations were false and asked for the case to be dismissed. The director was however, tried for rape in 2011 and released on bail.
The case has now been dismissed by the Supreme Court due to a lack of evidence.
Bhandarkar is famed for his gritty exposés, revealing the underbelly of life in films such as Chandni Bar, Page 3 and Corporate.