Her announcement came a day after the organisers moved the High Court, seeking a direction to the authorities to allow the event as the Karnataka government had refused permission for it after protests by Kannada outfits.
"Since the police of Bangalore have publicly said that they will not be able to ensure mine & all who attend safety for my New Years event, my team & I feel safety of the people should always come first therefore I cannot attend. God bless & I wish everyone a safe & happy New Year!" she tweeted.
The firm proprietress H S Bhavya said in her petition filed yesterday that she had submitted a letter to police to permit the show.
The government had on December 15 disallowed the show here and elsewhere in the state after protests by Kannada outfits,which said it would be an "assault" on city's culture.
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Karnataka Rakshana Vedike and other outfits had held protests, taking out rallies and burning effigies of Sunny Leone.
She said due to this, all other arrangements and sanctions ran into a disaster, resulting in lenders asking the organisers to return their money, fearing the uncertainty.
Bhavya also alleged that the protestors are seemingly and by records supposed to be anti-social elements engaged in acts of vandalism and creating of unrest.
"Their unfair threats and pressure should not be the driving force for the state police to take such unmindful decisions," she pleaded.
Sunny was scheduled to perform at Manyata Tech Park in the city suburbs.