A hotel where Aamir Khan stayed incognito can heave a sigh of relief. The Uttar Pradesh authorities have decided not to cancel its license, days after it was found to have let the Bollywood actor stay without establishing his true identity.

Hotel Saraswati in Mugalsarai town, some 300 km from Lucknow, in Chandauli district has been let off with a warning.

"After probing the matter for over a week, we finally decided not to cancel the license, " Chandauli district magistrate Rigzin Samphel told reporters.

"However, we have warned the manager and owner of the hotel that if they are found giving hotel rooms without establishing the identity of individuals in future, the license would surely be cancelled, " he added.

Aamir stayed there as part of the promotion strategy for his new movie, "The Three Idiots."

Police had served a notice to Hotel Saraswati Dec 15 seeking an explanation for "flouting the basic rules for allotment of rooms in a hotel".

The hotel in its reply did not mention anything about Aamir's stay, but accepted that procedural identification was not carried out while giving rooms to the actor's team.

According to police, for promoting his movie "3 Idiots", Aamir Khan roamed around Varanasi district in the guise of an elderly Maulana and stayed in Hotel Saraswati.

According to police, in the name of Akram Shah and Co, seven rooms were booked for Aamir and his team in the hotel. The actor arrived in Varanasi Dec 11 and headed to other destination Dec 13.