Dewan Nabi, 35, has been charged with one count of indecent assault and one count of unlawful assault after a 16-year-old girl complained to police about an incident at the village on Monday.
Lawyer Tom Danos told Melbourne Magistrates Court that Nabi was anxious to have the matter resolved as quickly as possible.
"His great concern is that he is here only for the period of the Games, or had intended to be here for the period of the Games," Danos said.
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Nabi, who has surrendered his passport to police, has been suspended from the Indian team and has moved out of the athletes village, Indian team officials said.
Outside the court, Indian official H.J. Dora released a statement confirming that Nabi denied the allegations.
"A hearing has been set and we look forward to the matter being finalised," Dora said, adding that the Indian team would look at Nabi's status after that.