The Celebrity Big Brother winner was thought to have been stopped by immigration officials at Mumbai Airport as she prepared to travel to the opening of the Miss Bollywood musical in Berlin.
Gere kissed Shetty five months ago during an AIDS awareness event in India, sparking outcry among strict Hindus who claimed Shetty had violated the country's obscenity laws.
But UK spokeswoman Teji Singh denied that the actress had been arrested or detained, saying: "Every time Shilpa leaves the country, she has to show her paperwork because of the Richard Gere thing.
"There was absolutely no detention, no arrest whatsoever. She was rummaging through to get her paperwork and just stepped aside to a side room so she wouldn't block the queues.
Responding to Indian spokesman Dale Bhagwagar's claim that Shetty had telephoned him "in tears", Singh said: "She wasn't crying. She was bunged up with the flu and she was only in there for eight to 15 minutes."