Quoting sources in the Mumbai police, several media reports claim that Rahul Bhatt was questioned by intelligence agencies.
During the interrogations, he has reportedly admitted to meeting Headley but said that he was not aware of the his terror plot.
The intelligence officials have reportedly given him a clean chit.
The mention of a 'Rahul' in many of the mails that Headley sent to Pakistani handlers raised many doubts in the minds of the officials.
Congress General Secretary, Rahul Gandhi, Bollywood stars such as Rahul Khanna and Rahul Bose including Shah Rukh Khan, who played 'Rahul' in many movies, were shortlisted by the authorities.
The American terror suspect, Headley hit the headlines after the Federal Bureau of Investigation busted a suspected Lashkar-e-Toiba terror plot targeting India.
Headley along with Canadian Tahhawur Hussain Rana were detained and questioned by the agency following the terror raids.
In a bid to extradite the duo to India from US, National Investigation Agency (NIA) has filed an FIR against Headley and his associate Rana and has booked them for waging war against Indian state.