Facebook and Google say they have complied with an Indian court directive and removed "objectionable" material. They are among 21 web firms, including Yahoo and Orkut, facing a civil suit in Delhi accusing them of hosting material that may cause communal unrest.
A criminal case of similar allegations is due to be heard next month.
Judges have threatened to block sites that fail to crack down on offensive content, but many firms say it is impossible to pre-filter material.
Late last year, Communications Minister Kapil Sibal met officials from Google, Facebook and other websites and said the government would introduce guidelines to ensure "blasphemous material" did not appear on internet.
The Delhi High Court last month asked Facebook and Google India to "develop a mechanism to keep a check and remove offensive and objectionable material from their web pages" or "like China, we will block all such websites".