"The case was withdrawn after Tamil Film Producers Council (TPFC) and South Indian Film Artists Association (SIAA) intervened and settled the issue amicably," read a statement.
"Shruti is very thankful for the intervention of SIAA on the matter as the lawyer sided with her cause due to harassment meted out to her. Thanks to the support of the industry bodies, she has also decided to withdraw the defamation claim against the producers for misrepresentation and revealing misleading facts to the media," Shruti's spokesperson told IANS.
Keeping this issue in mind, TPFC and SIAA said that artistes should work in tandem with the producers and not cause heavy losses to them because of their irresponsible acts.
Actress Tamannaah Bhatia has replaced Shruti in the project, which also features Akkineni Nagarjuna and Karthi. It is being directed by Vamsi Paidipalli.