A division bench comprising Justices Uma Nath Singh and Justice V K Dixit passed this order on the PIL filed by social activist AP Shahi.
The petitioner sought a direction for CBI probe into communal riots in Faizabad and other parts of the state on October 24.
In its reply, the state government told the court that a magisterial inquiry has been set up and DM Faizabad has nominated ADM J P Tiwari as inquiry officer, who will submit his report within a fortnight.
Adequate compensation of about Rs 41 lakh has been paid to 99 victims.
The court gave three days time sought by the petitioner's consel to file rejoinder against the government reply.