UPDATE 1-Russia drops criminal case against top economist Mau - sources

(Adds Mau's lawyer in third paragraph)

By Darya Korsunskaya and Polina Devitt

MOSCOW, Oct 14 (Reuters) - Russia's interior ministry has dropped a criminal case against leading economist Vladimir Mau, three sources familiar with the investigation told Reuters, four months after he was charged with massive fraud.

The charges against Mau, an economic liberal with close links to top policymakers, sent shockwaves through Russia's academic and economic elite when they were announced in June. Mau denied the charges against him.

It was not clear why authorities had dropped the case - a decision that one of the sources said was taken late on Thursday. Mau's lawyer Alexei Dudnik was quoted by Interfax as saying the case had been dropped due to Mau's non-involvement in the crime.

The ministry said on June 30 that Mau had been charged with fraud "on an especially large scale". Investigators conducted searches at the homes of Mau and employees of his institute, the Russian Presidential Academy of National Economy and Public Administration.

Mau was accused of embezzling funds from the institute where he is rector, as part of a larger case involving another top academic and a former deputy education minister.

He was initially placed under house arrest, which was later lifted, although he was forbidden to leave the country. (Editing by Mark Trevelyan and Gareth Jones)