A bench of justices S S Nijjar and Ranjana Prakash Desai dismissed a Hyderabad lawyer's appeal against the high court's order.
The police had registered a case against Naidu on a lower court's direction on athe advocate's complaint that the leader had cheated the people of Telangana as he had promised in his party's election manifesto that he would support the formation of a separate state but had changed his stance after the polls.
Naidu had then approached the high court for quashing of the proceedings against him and the judge allowed his plea.