Radhe Maa was anointed a 'Mahamandaleshwar' of Juna Akhara in August last year at Haridwar.
However, she was removed from the post within a few days following a number of allegations against her, including continuance of her ties with her family.
Sources in the 11-member inquiry committee said that the charges against her "have not been found to be true".
However, a final decision of allowing her to take part in the Maha Kumbh as a 'Mahamandaleshwar' would be taken by the General Secretary of Juna Akhara, Swami Hari Giri, the sources added.