The story made global headlines last week after several parents claimed that their children had been sexually abused by teachers, pricked with needles and forced to take unidentified white pills.
Chinese police said on Tuesday some claims of child abuse at a Beijing kindergarten run by New York-listed RYB Education were unfounded.
Preschoolers at the kindergarten in Chaoyang District were reportedly sexually molested, pierced by needles and given unidentified pills, stirring up a national outrage. Liu has been detained.
Meanwhile, one of the parents who had accused the kindergarten of feeding children mystery pills admitted that his young child was not actually drugged at the school, stating that a video showing the kid being given pills was in fact filmed at his own home.
No abnormality was found after the examination of a girl involved in the case upon her parents' request. The parents said that when they asked their kids about the marks, the children said that teachers had given them injections.
The surveillance footage of the problematic class obtained by police had been damaged, which was found to be due to frequent power outages.
Investigators said an employee in the surveillance room was annoyed by the noise made by the monitor and would frequently cut electricity after school.
The Chaoyang police added they had recovered 113 hours of footage from the school's surveillance system, but had not yet found on it instances of people harming children.
The rumors of an alleged molestation ring originated with two women: Liu, 31, and Li, 29. Li, on the other hand, received a formal warning by police.
A video clip was broadcast by a TV station on November 23 showing a child saying he was fed pills by teachers.
Parent surnamed Zhao had said that there were naked male "doctors" conducting body checks on her daughter.
"The public security bureau will investigate unlawful criminal acts that allegedly infringe upon minors, and take firm and strict action", the police statement said.