The Thane Rural police had detained Pandey last night and later released her after issuing a stern warning.
The Mira Road police had received a call from a local resident last night that he had spotted a couple behaving indecently on the streets in Mira Road.
"We rushed to the spot and found that only Pandey, and nobody else, was present there. She was scantily dressed and considering the safety issues, we took her to the police station," a police official said.
The police also informed Pandey's mother about the incident and later dropped the actress to her residence in Juhu in suburban Mumbai.
However, the starlet later took to the social networking site and claimed that she was just listening to music in her car.
"Listening to songs in the car is not an 'indecent behaviour' pls stop spreading such kinda news about me," she tweeted.