Leading doubles exponent Leander Paes, top singles player Somdev Devvarman and Rohan Bopanna had skipped the Asian Games to play on tour so that they could protect their rankings.
AITA issued a statement, saying that the players' stand was "misunderstood" by the government.
"The three players represented India in the Davis Cup one week before the Asian Games and India lost a very close tie to the World Champions Serbia - this shows their commitment to the nation," All India Tennis Association (AITA) Secretary General Bharat Oza said in the statement.
AITA argued that the players actually sacrificed a lot of money, which they could have earned from the government by winning medals.
"AITA is confident that the three players in question would have definitely won medals for the country and would have earned large cash rewards from the Central Government & State Government. In fact by skipping the Asian Games and playing Challengers/ATP events, the players in question have lost money in order to protect their rankings," Oza said.