The KFPA had banned her for creating ripples in her co-star Darshan's married life.
"I am happy and I am relieved over the decision. I thank all the film industry personalities, fans and media all over the country who had stood by me in the moment of crisis. I particularly thank producer Parvathamma Rajkumar for supporting me in a big way," said Nikita over phone from Mumbai.
The KFPA's ban was criticised by women's right activists and the actress, who received support from actors like Shivaraj Kumar, Raghavendra Raj Kumar and Duniya Vijay, was confident that the truth will prevail.
Nikita's supporters also included National Award winning actress Tara and former president of the Karnataka Film Chamber of Commerce Jayamala, who criticised the KFPA's decision to ban her.
Meanwhile, actor Darshan, who has been arrested for assaulting and threatening his wife Vijayalakshmi, applied for bail Wednesday but the hearing of the case has been postponed till Sep 19.
The actor was sent to 14 days' judicial custody Friday, but after spending a night in Parappana Agrahara jail in east Bangalore he has been shifted to a hospital for treatment of suspected jaundice.