Justice Z K Saiyed had, during the hearing yesterday, stated that an accused cannot be granted bail for attending a festival.
Sai's lawyer then sought permission to withdraw the application and the court allowed it.
On July 9, Additional Sessions Judge in Surat, H S Muliya, had rejected the plea for one-day bail.
Sai had said that his Ashram had a long tradition of celebrating the Guru Purnima and he needed to attend it, being a religious leader.
Her elder sister has made similar allegation against Asaram who is currently lodged in Jodhpur jail in connection with another case of sexual assault.
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