Franco Mulakkal was the first Catholic bishop in India to be arrested for assaulting a nun.
A court in Kottayam acquitted him of all charges after a trial that lasted for more than 100 days.
In 2018, the nun from a congregation under the Jalandhar diocese had accused Bishop Franco of sexual assault.
Bishop Franco was arrested and the charges listed against him included wrongful confinement, criminal intimidation.
With inputs from NDTV