The move on Sunday night came hours after police booked the Lok Sabha member from Kollam, based on the statement she had given to police earlier in the day.
Menon has formally conveyed to police that that she was withdrawing her complaint against the politician
According to Kollam East police, they received an e-mail from 39-year-old Menon late Sunday night, saying that she was withdrawing her complaint against Kurup.
Police said the legal process required that the already prepared FIR be submitted to court and the actor's statement recorded again if the case has to be closed.
Shweta made the surprising announcement that she was dropping the charge against Kurup since he had apologised profusely for the distress caused to her.
"In the wake of Mr Peetambhara Kurup's repeated public and personal apology about the incident at the President's Boat Race at Kollam, I am withdrawing all legal and other actions against him," the actress had said in an e-mail message to the media in Kochi.
She said this decision followed consultations with her 'guruji', her father and husband, and made it clear there was no pressure whatsoever behind the move.
Menon made the climbdown within hours after she stood by the charge against Kurup in her statement given to police, based on which a case was registered against him.
Kurup had all along held that the charge was totally untrue and produced some photographs of Friday's event claiming that the actress was harassed by some others.
He said on Sunday that 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.
Following Shweta's statement police had registered a case against Kurup charging him under IPC sections 354 and 354 (A) for assault or criminal force to a woman with intent to outrage her modesty.
Acting on the DYFI complaint a police team led by a woman circle inspector had gone to Kochi on Sunday to record Shweta's statement.
Shweta had told the team at her apartment that she was insulted by Kurup during the President's Trophy boat race in Ashtamudi lake in Kollam on Friday, to which she was invited as a guest.
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