Australian Prime Minister Kevin Rudd has warned students from India not to take the law into their own hands, following the brutal assault on four Indians in Melbourne.

"The laws are there for a purpose and for all citizens to adhere to them. People should not take matters into their own hands," he said

Rudd's statement came after writer and activist Farrukh Dhondy reportedly called for 'some form of retaliation'. Dhondy urged Indians in Australia to take matters into their own hands, The Age reported on Thursday.

Saturday's attack outside a bar in Epping is the latest in a string of attacks on Indian students since May this year. It comes even as Victoria's Premier John Brumby prepares for a mission to India to help repair Australia's reputation.

The victims say they were bashed in a car park by up to 70 people saying, "You Indians, just go back to your country".  But the police say there were only four or five offenders; 15 others made racist comments 'only'.

Onkar Singh, the brother-in-law of two of the victims, told local media that his relatives suffered serious injuries. "Gurdeep has his jaw broken, and Mukhtair's shoulder is broken," he was quoted as saying.

Victims in all these incidents have maintained that the assaults were racially motivated. This despite Canberra assurances to India's External Affairs Minister S M Krishna, that students from India would be taken care of.