In a statement issued today, the Ministry of Home Affairs ruled out accusations against Balkrishna.
"Balkrishna is innocent and he was not involved in any criminal activities in Nepal," the statement said.
He has been accused of furnishing false information to procure an Indian passport and travelling abroad using the fake document.
Balkrishna was born in Haridwar of India. However, his father and mother hails from Syangja in western Nepal.