The Celebrity Big Brother winner was stopped at Mumbai Airport by immigration officials on her way to the opening of the Miss Bollywood musical in Berlin.
Shetty was reportedly held at the airport by immigration officials who said they had no record of a Supreme Court ruling which overturned a ban on her leaving the country, and said she was still wanted for obscenity charges over the kiss.
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Obscene: Actress Shilpa Shetty was in tears after she was arrested at Mumbai Airport by officials who said she was still wanted in connection with obscenity charges and banned from leaving the country
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Infamous clinch: The embrace between actor Richard Gere and Shilpa caused an outcry among hard-line Hindus who accused the pair of violating anti-obscenity laws
Hollywood star Gere, 58, caused an outcry when he grabbed Shetty, 32, swept her backwards, and kissed her several times on the cheek at an Aids-awareness event earlier this year.
Conservative hard-line Hindus claimed that the pair violated the country's anti-obscenity laws.
Crowds burned posters of the two stars in protest at the kiss.
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Tears: Shilpa, seen at a premiere earlier this year, was said to be in tears after being held by immigration officials
The star was only allowed today to join the dance troupe performing with her at the Miss Bollywood musical after prolonged questioning.
Her spokesman, Dale Bhagwagar, said: "She called me in the middle of the night and was in tears."
Shetty said: "I can understand something like this if I'd committed a criminal offence.
"But what was my offence, when I'm just an actor, going to perform a musical on foreign land."
After the April incident, a regional court in India issued an arrest warrant against Gere, star of films like Pretty Woman and Chicago, and barred Shilpa from travelling abroad.
But its ruling was overturned by the Supreme Court.
Gere swooped down on Shetty after shouting in Hindi to thousands of truckers "No condom, no sex".
Shetty went on to defend the actor, saying "so much has been blown out of proportion", and Gere apologised for causing offence.
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