The animosity generated by the incident preceded the violence against Dalits visiting the nearby Bhima-Koregaon war memorial on January 1.
The complainant has filed an affidavit in the court stating she is withdrawing the case filed under the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act against 49 people from Vadhu Budruk village.
Sushama Ovhal, in her affidavit on December 31, said, "We (both communities) have cordial relations and to avoid any disharmony and to maintain peace in the village, we are withdrawing the cases registered against each other."
Haque confirmed the development today.
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On December 30, a board was put up near Gaikwad's samadhi, saying it was Gaikwad -- a Dalit Mahar -- who defied Aurangzeb's orders and performed the last rites of king Sambhaji (Chhatrapati Shivaji's son). The Mughal Emperor had ordered Sambhaji's execution upon his capture in 1689.
The board led to a dispute, as some members of a non-Dalit community claimed that it was their ancestors who performed Sambhaji's last rites.
This led to registration of police case, creating tension in the area.
On January 1, as Dalit leaders visited the nearby Bhima-Koregaon war memorial, there was violence, leading to a call for Maharashtra Bandh on January 3.