Yes theory has been denied:
It is indeed ironic that the origin of this theory does not lie in Indian records, but in 19th Century politics and German nationalism. No where in the Vedas, Puranasor Itihasas is there any mention of a Migration or Invasion of any kind. In 1841 M.S. Elphinstone, the first governor of the Bombay Presidency, wrote in his book History of India:
'It is opposed to their (Hindus) foreign origin, that neither in the Code (of Manu) nor, I believe, in the Vedas, nor in any book that is certainly older than the code, is there any allusion to a prior residence or to a knowledge of more than the name of any country out of India. Even mythology goes no further than the Himalayan chain, in which is fixed the habitation of the gods... .To say that it spread from a central point is an unwarranted assumption, and even to analogy; for, emigration and civilization have not spread in a circle, but from east to west. Where, also, could the central point be, from which a language could spread over India, Greece, and Italy and yet leave Chaldea, Syria and Arabia untouched? There is no reason whatever for thinking that the Hindus ever inhabited any country but their present one, and as little for denying that they may have done so before the earliest trace of their records or tradition.'
http://gosai.com/writings/the-myth-of-the-aryan-invasion
