Victoria Police has denied they had a plan to limit publicity about the bashing of three Indian men outside a Melbourne pub on Saturday night.

Four men were arrested in relation to assault and affray, but they were released pending further investigations. Police believe a fifth man may also have been involved in the bashing outside a pub at Epping in Melbourne's east.

Stung by the racial attack against three Indians in Melbourne, Victorian Police on Wednesday said it has launched investigations in to the circumstances surrounding the incident.

Dismissing the contention by relatives of the victims that a group of 70 people attacked the three Indians, it said only four men were involved in the assault and a group of up to 20 were bystanders.

"Four men had been involved in the actual assault and a group of up to 20 had been bystanders," Acting Senior Sergeant Glenn Parker was quoted as saying by 'The Age'.

A Victoria Police spokeswoman said police had witnessed about 15 men and women making racist comments and one woman throwing water on a bystander during the heated incident.

She said the group continued to sling racist abuse and threats at the victims as police took them away from the scene. The Victoria Police has launched an investigations "in to the circumstances surrounding the racial attack."

Details of the incident only emerged publicly on Tuesday, prompting an outraged Indian media to claim Victoria Police had been involved in a cover-up.

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