Diana, an Azerbaijani woman linked to a Lahore case, said Ahmed Tanveer did not sexually assault her and did not take her mobile phone.
In a video statement she asked the court to close the case, saying her earlier accusations were made under pressure and now she denies the previous claims.
Ahmed Tanveer's lawyer contended that police held his client outside the Lahore Sessions Court even though an interim bail extension was granted until October 27, noting the court had extended protective relief.
Nevertheless, the investigating officer told the court the accused was not cooperating with the ongoing investigation.
Diana's latest statement has drawn renewed attention to the case, highlighting the clash between the defence's request and police concerns.
While Diana seeks case closure, police continue to express worries about the accused's lack of cooperation.
Further legal steps will determine how the court responds to these new developments and the request to end the proceedings.