Congress leader and former mayor Deepchand Yadav had filed a case against her in the court after Bharti's photograph was published in a news magazine's September 2004 issue.
In this photograph, Bharti was seen holding the tricolour.
The complainant had objected to the manner in which Bharti held the flag and alleged that she had insulted the tricolour.
The court held that the flag was neither defaced not defiled. Chief Judicial Magistrate Pankaj Maheshwari on Thursday discharged Bharti in this case.