Judicial Magistrate Mitali Govind Rao dismissed the complaint against Yadav yesterday, saying there was no basis for taking cognisance against him.
The court also refused the complainant's demand of issuing a summon against the SP supremo.
Local activist Virender Singh, who is also an accused in three riot-related cases and is currently out on bail, had filed the private complaint against Yadav for his "objectionable" comments made during a reported speech.
Communal clashes had erupted in Muzaffarnagar and adjoining areas of western UP on September 7, that killed over 60 persons.
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