He rejected her, that's for sure. But at the same time, based upon everything we've seen for the past month and a bit, he also didn't reject her! Agreed, that right now, Saras is confusing. We don't know what he wants because he doesn't know what he wants. But I think what we need to do is see Saras from the perspective of Dugbaa. She thoroughly admitted, through Friday's episode, that Saras would forever hold the burden of hurting Kumud; that he was the only one who would be able to emotionally heal Kumud after the tamasha at home. She also told Kumud, indirectly, that she knows in a little, private corner of her heart, she had a soft spot for Saras. Basically, yes, Saras seems confused. But he's still very pure, and very soft at the heart. Let's just wait and see how the story unfolds!
I agree with u, saras is very soft at heart and if he is the one to give hurt then he can only heal, his character is only very confusing, he himself needs to decide that what he wants and what not!