The court at Erramanzil here rejected her mother's petition seeking her custody.
The actress needed counselling and rehabilitation for next six months, the court held, said her mother's lawyer Pradeep Kumar.
The applicant had contended that her daughter had been framed, and being a major, wanted to return home rather than staying in the rescue home.
Keeping her in the rescue home was a violation of her fundamental rights, the petition contended.
Kumar said that a fresh application challenging today's order was filed before the sessions court and would come up for hearing later this week or the next week.
The actress had won a national award as a child actor.
The police had claimed to have busted a prostitution racket at a five-star hotel here and apprehended the actress. She was later sent to a rescue home. She reportedly told the police that she was facing a financial crisis as no new film was coming her way.
An assistant director who allegedly acted as her agent, was arrested.