The believers were taken into police custody following accusations that they were converting people to Christianity and undermining the Hindu religion.
A Nepalese court has ruled that the allegations of proselytism against the four have not been proven but the matter has not yet been discharged by the court.
The suspects have been released without bail but will be required to attend further court hearings as the investigation continues.
In an interview with religious freedom charity Christian Solidarity Worldwide (CSW), the senior lawyer Govinda Bhandi Sharma said: "The whole allegation and prosecution was baseless and biased.
"The Dang Superintendent of Police who initiated the arrest order has a bad track record of suppressing Christian minorities."
CSW spokesperson Steven Selvaraj told Premier that although the anti-conversion law has not stopped churches from gathering, discrimination towards faith-groups has increased.
"Gatherings continue to take place and they take place in a legal way, but there is certainly a sense of concern about whether they can actually meet freely because you just never know when the authorities might barge into a meeting and accuse them of proselytization," he said.
"We have seen a steady rise in cases that we've heard from the ground of false accusations of Christians and the accusations are usually around the issue of proselytization and attempted conversion."
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