The Indo-Mexican pair lost 5-7, 6-7(4/7) to the pair of Austin Krajicek and Artem Sitak.
Leander Paes was already miffed at his exclusion from TOP Scheme.
Leander Paes did not travel to Indonesia with the rest of the squad.
Paes, who has won eight medals at the previous editions of Asian Games, has not competed in the prestigious quadrennial event since winning the men's doubles gold with Mahesh Bhupathi and mixed doubles gold with Sania Mirza at the 2006 Doha Games.
Speaking to mid-day following a record doubles win against China, Leander Paes is effusive in his praise of ex-partner and current captain Mahesh Bhupathi, putting an end to almost two decades of bitterness
India advanced to the World Group Play-offs with a sensational 3-2 win over China.
Leander Paes was tied on 42 wins with Italian great Nicola Pietrangeli but managed to surpass him with a gritty performance on Saturday in the Davis Cup match against China.
Veteran Leander Paes will make yet another attempt to create the Davis Cup record for the most doubles win as India clash with China in their den in "brutal" cold conditions for a place in the World Group Play-offs, starting on Friday.
Leander Paes will aim to better former Italian star Nicola Pietrangeli's record of 42 Davis Cup wins when the Indians take on the Chinese in Tianjin on April 6-7.
Leander Paes, playing his 97th ATP World Tour event, and America's Cerretani lost the final 2-6 6-7(2) in one hour and 27 minutes.
Ravi Shastri joined PV Sindhu in joining the initiative.
Leander Paes, world No 61, has won crucial 125 points with this win as he is striving to move up the rankings ladder.
The unseeded Indians were beaten 1-6 2-6 by their 11th seeded opponents in a contest that lasted one hour and nine minutes at the Melbourne Park.
Veteran Leander Paes and Purav Raja fought off a match point to shock formidable fifth seeds Bruno Soares and Jamie Murray and progress to the men's doubles third round at the Australian Open on Saturday.
Paes and Raja dispatched the pair of Nikoloz Basilashvili and Andreas Haider-Maurer 6-2 6-3 in their opening round.
At 44, with 18 Grand Slam titles and an Olympic medal in his cupboard, Leander Paes is finding it "tough to set new goals".
Jeevan, now ranked 102, stood out with his well- calculated lobs and precise strokeplay, making a huge difference to the outcome of the match.
Leander Paes and Purav Raja won their first title together after joining forces as they lifted the Knoxville Challenger trophy with a close win over James Cerretani and John-Patrick Smith.