The pair was beaten by Australia's Paul Hanley and Zimbabwe's Kevin Ullyett.
The Indo-American pair lost to the Israel's Jonathan Erlich and Andy Ram in straight sets at the Madrid Masters.
The defending champions will take on Nenad Zimonjic of Serbia and Elena Bovina of Russia in the mixed doubles final.
With his exit the Indian challenge in the ATP Challenger tennis tournament came to an end.
Leander Paes and Paul Hanley beat Mahesh Bhupathi and Justin Gimelstob to enter the final of the Thailand Open.
The fifth seed will play Thailand's Danai Udomchoke in the final of the ATP Challenger.
The Indo-Czech duo lost 3-6, 6-0, 10-7 to top seeds Mike and Bob Bryan in the Cincinnati Masters semi-final.
The Indo-Czech duo went down 6-7(4), 7-6(5), 10-2 to Israel's Jonathan Erlich and Andy Ram in the semi-final.
The second seeds were beaten by the Israeli pair of Jonathan Erlich and Andy Ram in the Pilot Pen tournament.
Leander Paes and Radek Stepanek downed Jonathan Erlich and Richard Gasquet in straight sets to reach the quarter-finals of the ATP Indian Wells Masters tournament.
Leander Paes and Radek Stepanek went through several anxious moments before getting the better of Daniele Bracciali and Jonathan Erlich in the first round of the men's doubles at Wimbledon on Friday, even as the pair of Mahesh Bhupathi and Daniela Hantuchova lost in the mixed doubles
Fifth seeds Sania Mirza and Cara Black cantered into the second round, even as the duo of Rohan Bopanna and Aisam-ul-Haq Qureshi were shown the door in the men's doubles, at the French Open, in Paris, on Thursday.
India's top ranked men's singles player Prajnesh Gunneswaran crashed out in the pre-quarterfinals of the Tata Open Maharashtra after suffering a straight-sets defeat against fourth seed Kwan Soon-woo of Korea, on Thursday. Prajnesh lost 3-6, 6-7(5-7) against the Korean at Pune's Mhalunge Balewadi Stadium.
Indian tennis players enjoyed an all-win day at the US Open as three of them reached the men's doubles third round with their respective partners, while Sania Mirza entered the women's doubles pre-quarters.
Ramkumar-Balaji win Cassis Challenger title.
Defending champion Rohan Bopanna went down fighting in the thrilling doubles opening round game at the third edition of Tata Open Maharashtra, in Pune, on Wednesday. Playing alongside local boy Arjun Kadhe, the ace Indian player Bopanna dominated the game initially. However, after winning the first set convincingly, the Indian duo couldn't manage to continue the momentum further in the games against French pair of Benoit Paire and Antoine Hoang as they lost the match 3-6, 7-5, 10-7.
Frenchman Benoit lost his temper in the third game of the second set when top seed Tsitsipas halted the match to attend to a broken shoe lace.
Top seeded Indian pair of Mahesh Bhupathi and Rohan Bopanna on Saturday crashed out of the doubles event in the semifinals of the Aircel Chennai Open 2012 after losing to Israel's Andy Ram and Jonathan Erlic.
Summary of sports events and persons who made news on Thursday
Summary of sports events and persons who made news on Monday
Summary of sports events and persons who made news on Tuesday
A summary of sports events and persons who made news on Saturday
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