Indian police have not found any evidence to support allegations that the father of a child star in the Oscar-winning film Slumdog Millionaire tried to sell his daughter, a senior officer in Mumbai said today.

Rubina Ali Qureshi's father, Rafiq Qureshi, and other slum dwellers were questioned by police following an undercover investigation by a British tabloid, which alleged that Mr Qureshi tried to sell the nine-year-old for £200,000 to a reporter posing as a representative of an Arab princess from Dubai.

"So far there is no evidence of any offence, hence there is no registration of complaint and no arrest," Nisar Tamboli, a senior police officer, said.

Rubina's mother demanded an investigation following publication of the newspaper's sting operation, in which Qureshi took his daughter and her uncle to the Leela Kempinski hotel in Mumbai to meet the undercover reporter posing as an intermediary for the Arab royals.

The News of the World said it investigated following a tip-off that the family was considering allowing a genuine Middle Eastern family to adopt their daughter in exchange for help in getting them out of the slum in which they live. Rubina, who starred as the youngest incarnation of the film's heroine, Latika, lives with her father and stepmother.

It was at the Mumbai hotel that Rajan, Rubina's uncle, allegedly said the price for his niece would be £200,000. Rubina's father later denied he was trying to sell her, but the sting made headlines in India and abroad.

Slumdog Millionaire, a rags-to-riches romance about a slum boy competing on a television game show, won eight Academy Awards this year.

Initially, the film's success was overshadowed by objections in India to its name, its depiction of the lives of impoverished Indians, and the treatment of the cast. Since the film's success at the Oscars India's media have been caught in a patriotic frenzy and politicians have praised the film.

This week a charitable trust from Qatar offered to pay for Rubina's education, which is already being overseen by the producers of the film.