Vikas Muker, 27, an exchange student had pleaded not guilty earlier to two counts of rape that allegedly happened at Kingston-on-Murray in South Australia in June last year.
The charges were dropped because the court heard there was no reasonable prospect of a conviction, according to an ABC report.
The student had earlier broken down during an hearing in Adelaide in March this year as he told judges he lacked stable accommodation and struggled to afford food, the report said.
Muker who represented himself in court had told the judge he was homeless and unable to find help.
He had been kept under strict home detention in Renmark, but had told the court he can no longer live there and must change his bail arrangements.
The judge in March had removed the home detention requirement and ordered Mukar to report to police three times a week.