Charges police laid against a 36-year-old Dubbo man accused of sexually touching an 11-year-old girl in March have been withdrawn in court.
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Police charged the man with two counts of non-consensual aggravated sexual touching in March, after the girl's mother is understood to have allegedly located the man laying on the bed next to her daughter.
The man was alleged to have been covering his groin area when the woman found him.
He pleaded not guilty to both charges.
After the man was arrested by police on March 29 he was denied bail.
According to court documents, police said there was a strong case against the man.
"The prosecution case is very strong with statements from the alleged victim and witness, with some eye witness evidence," police said when bail was refused.
"There is a strong possibility of a custodial sentence being imposed if the accused were to be convicted of this offence.
"The accused is alleged to have committed this offence against a child in his care and in a vulnerable position."
When he appeared before Dubbo Local Court on March 29, Magistrate Theresa Hamilton decided to grant bail to the man.
The man re-appeared in court on Wednesday when the court was told the charges had been withdrawn.
An order preventing the man from going near the girl he was accused of touching and her siblings will remain in place for two years.
The maximum penalty for sexually touching a child between 10 and 16 years of age in NSW is 10 years imprisonment.
If the child is aged under 10 years of age the maximum penalty is 16 years imprisonment.