"Gere is allowed to come and leave. He can't be arrested," said Anil Grover, attorney for Shetty, after attending the Supreme Court proceedings.
Chief Justice K. G. Balakrishnan and Justice R. V. Raveendran indefinitely stayed the arrest warrant issued against Gere last year by a court in the northwestern Indian city of Jaipur, Grover told The Associated Press.
Hindu activists filed three cases against the pair last year, including one in Jaipur.
Grover called the cases "frivolous" and "a total misuse of the legal process."
Shortly after the cases were filed by Hindu activists, Gere apologized for any offense he may have caused. But he also said the whole controversy was manufactured by a small hard-line political party.
Gere is a frequent visitor to India, promoting health issues and the cause of Tibetan exiles, tens of thousands of whom live in India.
Shetty, a well-known actress in India, became an international star after her appearance on the British reality show "Celebrity Big Brother."