JOIN USIn a series of posts on the micro-blogging site Twitter, Lohan, who came to India to make a BBC documentary about child trafficking, appeared to claim that she had rescued the children and was now changing the world "one child at a time".
"Over 40 children saved so far... Within one day's work... This is what life is about... Doing this is a life worth living!," Lohan had written on Twitter.
But according to the charity Bachpan Bachao Andolan, which organised the raid, neither the 23-year-old actress nor the BBC, were present at the time of the raids, reported The Telegraph.
Social activist and lawyer Bhuwan, who belongs to the campaign group, has accused Lohan of portraying dangerous child rescue operations as superficial events, which could be carried out in a day by passing celebrities.
The raids, which involved two months of planning by local police and magistrates, were carried out in 15 workshops in central New Delhi where children as young as seven were making mirrored ornaments for export.
According to Bhuwan, they were freed on Tuesday, hours before Lohan arrived in India and a day before she and her BBC film crew visited the rehabilitation centre where the children were taken before being returned to their families.
"She was not even in the country when this raid happened," he said.
"We'll be complaining to the BBC and talking to our lawyers ... Would Lohan know where these workshops are?"
But BBC has dismissed the accusations made by Bhuwan, calling it a misinterpretation.
"Lohan did not say she was present at the raid, this is a misinterpretation. She was merely referring to a raid that happened connected to child trafficking," said a BBC spokesperson.
Lohan is meanwhile singing praises about the Bachpan Bachao Andolan through Twitter.
"BBA stands for bachpan bachao andolan which should inspire us all due to their excellent work... BBA does amazing work and I thank them for it! Glad to be with people for all of the aftermath," tweeted the actress.