The accusations were said to have been made by rocker Gary “Angry” Anderson, 60. He flew with Tania to Tarin Kowt to entertain Australian troops.
The 37-year-old actress, who has appeared in Bollywood movies, said that the allegations could harm the career she had spent 10 years building in India.
The allegations surround a tour to Australian military bases in Afghanistan last month undertaken by ex-Baywatch babe Zaetta and a number of other entertainers.
In the documents, Aussie MoD officials said he informed them how special forces troops told him they had bedded Tania – “and had photos and video to prove it”.
Tania Zaetta's strenuous denial that she slept with elite special forces soldiers was backed up by a fellow entertainer, who said the tour was so hectic that there would not even have been time for a liaison. Zaetta said she had contacted lawyers and would consider suing the Australian defence department for leaking unsubstantiated rumours that she had behaved in an improper way during a tour of Australian military bases last month.
"How does a supposed document ... that I don't know about get leaked in the first place? That's a little bit concerning about the security of the country," Miss Zaetta told Channel Nine television.
"Perhaps I do feel like I need an apology because not only my family name but my career which I have worked very hard for is suddenly at stake here," News.com.au quoted her as saying.
"When things like this get into countries like that (India) it's not taken lightly.
"Sex scandals - rumoured, alleged, bad chinese whispers, whatever it is - aren't taken lightly in a country like that," she added. GutterUncensored.com
Zaetta has been accused of having sex with Australian special forces soldiers during a recent tour of war-ravaged Afghanistan.
However, the actress strongly denies it. The Defence department is investigating the allegations.
"That is the most ridiculous story I've ever heard about my life - and I've heard plenty over the years in this industry," Zaetta told Daily Telegraph.
Officials confirmed they had begun an investigation.
Defence Minister Joel Fitzgibbon ordered an inquiry into how the papers were made public.
And even Aussie PM Kevin Rudd was forced to comment on the scandal.
Tania, who reported for ITV show Loose Women and is thought to have a London home, was snapped with soldiers in Afghanistan. One seemed to peer at her cleavage.
Tania admitted she DID sleep in the same tent as men – but denied she had slept with anyone.
She said: “That is the most ridiculous story I’ve heard. It’s very hurtful.”
The department has been severely embarrassed after admitting it broke privacy rules by naming Zaetta in a briefing document to the Minister for Defence Joel Fitzgibbon.The federal Opposition has demanded an apology from Mr Fitzgibbon for the "gross" and "extraordinary" invasion of Zaetta's privacy.
Opposition defence spokesman Nick Minchin has demanded an explanation from the Defence Minister. GutterUncensored.com
"This is a gross invasion of her privacy," he said on Fairfax radio.
"It is very unfortunate and I think Mr Fitzgibbon, as the Defence Minister, should come out today and explain exactly how this has occurred.
"He should apologise publicly to her. This is an extraordinary invasion of her privacy. He has got some answers to provide," he added.
A high profile publicity agent she has hired said the impact of the allegations on her career in India could cost her $1 million (£480,000).
"I'd say it will cost her seven figures - definitely a million dollars. It's very serious. Sexual allegations even in this country are bad but over there, it's abhorrent."
Asked if she had been alone with any soldiers during the 17-day tour of Afghanistan and Iraq, the London-based Australian actress said: "You were never alone with any soldiers - you were in full view of everybody else all the time."
Her account of the tour being busy was corroborated by a musician from an Australian rock band, the Wolverines. GutterUncensored.com
The defence department has "apologised unreservedly" to Ms Zaetta for disclosing the claims.
The department said only: "We are unable to comment as the investigation is ongoing."
Kevin Rudd, the prime minister, said Miss Zaetta was entitled to pursue legal action. He said the defence department was conducting two inquiries, one trying to find out what, if anything, happened in Afghanistan and the other looking at how the document containing the allegations was handled. (continued)
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