According to local media, Shweta made the climb down within hours after she stood by the charge against 71-year-old Kurup in her statement given to the police, based on which a case was registered against the latter.
Malayalam TV channels said Shweta made the U-turn in a statement mailed to them in which she said she was withdrawing the complaint in view of the regret expressed by Kurup for offending her feelings.
Kurup had all along held that the charge against him was totally untrue and he produced some photographs of the event claiming that the actress was harassed by some others.
Today he said though he did not indulge in such a mean act "by look or by touch" he regretted if the actress felt offended during the function.
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Earlier, police registered the case against Kurup based on Shweta's statement, given to them at her apartment in Kochi this morning.
Police had charged Kurup under IPC sections 354 and 354 (A) for assault or criminal force to the woman with intent to outrage her modesty.
Acting on a complaint lodged by the CPI(M)'s youth outfit DYFI, a police team led by a woman Circle Inspector had gone to Kochi this morning to record Shewta's statement.
Shweta, a two-time state award winner and also a TV anchor, told the police team at her apartment in Kochi that she was insulted by Kurup and another person during the function.
Last night, along with her husband Sreevalsan Menon, she told reporters after meeting office bearers of various film industry bodies that she would forward a detailed complaint to Chief Minister Oommen Chandy.