Biswas, now 21, was accused of sending profane and threatening e-mails to her teachers. The charges were dropped after a male classmate was fingered as the real culprit.

Alleging that the investigation leading to her arrest was a "sham", and lacking any real evidence, she had initially sought $1.5 million in her 2012 suit against New York City.

Also included in the suit were the city's Department of Education, her school's principal Howard Kwait, and teacher Jamie Kim-Ross.

Biswas, who has since moved back to India, had initially demanded a key to the city after being arrested but did not include the request in her suit.

Her lawyer at the time had said getting a key to the city from then mayor Michael Bloomberg could make it clear "that diplomats are welcome in New York".

The details of the settlement were ironed out by New York Mayor Bill de Blasio's administration.

Batra also came down hard on the school principal who had made the egregious error of having Biswas arrested.

"Of course, the ethically compromised and arrogant Principal Howard Kwait upon learning of the unconstitutional charges being dismissed, retaliated by suspending Krittika," he said.

"During those proceedings, we proved Krittika's innocence - that her Internet Service Provider (ISP) was Time-Warner's 'Roadrunner' while the culprit's ISP was 'Earthlink'.

"One day later, with our forensic expert's sworn report, the actually guilty student was identified and he confessed, except he was not arrested or criminally charged, proof of foul discriminatory disparate treatment of Krittika despite her actual innocence," Batra added.