Despite Cricket Australia's repeated warnings, racism has reared its ugly head at the ongoing first Test in Melbourne, with Indian supporters complaining of "offensive and ugly" chants being hurled at them by local fans.

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A Herald Sun report said Australian supporters shouted "Show us your visas, show us your visas" at Indian fans, interviewed by their reporters. The visiting fans described the chant as "offensive, ugly and racist".

Even some Australian fans found the chants racist.

"That is racist," a home supporter, Heath Robbins, was quoted as saying.

"It is attacking a person's country and they should be kicked out of the ground as they should for any offensive behaviour to any other people," he said.

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"Everyone feels offended when they are attacked on the basis of their residency or where we came from," an Indian supporter, who did not wish to be named, was quoted as saying.

However, when CA officials and police investigated the incident at the old Bay 13 section, they did not find any offended fan.

CA spokesman Peter Young said no action can be taken against those involved in the chant because it was not reported to the police or security.

"Police have confirmed the chant took place and conducted extensive interviews with both Indian and Australian supporters and they did not find anyone who was offended," Young said.

"But we urge anyone who considers the comments to be racist to report them to police and security staff. Racism is in the eye of the beholder," he said.