NEW YORK (REUTERS) - An Indian woman whose arrest late last year prompted a diplomatic row between her home country and the United States (US) has won the dismissal of a US indictment charging her with visa fraud and making false statements to the government.

Ms Devyani Khobragade, who had been India's deputy consul-general in New York, had diplomatic immunity when she moved to dismiss the indictment on Jan 9, and as a result was entitled to the case's dismissal, US District Judge Shira Scheindlin in Manhattan ruled on Wednesday.

"The government may not proceed on an indictment obtained when Ms Khobragade was immune from the jurisdiction of the court," Judge Scheindlin wrote. She also lifted Ms Khobragade's bail, and said open arrest warrants based on the indictment must be thrown out.

A spokesman for US Attorney Preet Bharara in Manhattan had no immediate comment. Ms Khobragade returned to India in January.