The accused, from both Hindu and Muslim communities, were acquitted by Additional Sessions Judge N T Solanki as the police failed to provide any substantial evidence.
As in other parts of Gujarat, this riot broke out in Nadiad town after the Godhra train burning incident of February 27, 2002.
As many as 118 people from both the communities were arrested for stone-pelting, rioting and torching of shops, houses and vehicles.
All of them subsequently got bail.
The accused had submitted to the court during the trial that there was no hostility between Hindus and Muslims in the town and both communities were living in harmony at present.