Justice A J Desai issued a notice to the state government, seeking its response.
Setalvad approached the high court with the plea to quash the FIR as well as the chargesheet in the case after the Supreme Court refused to grant her any relief in the matter.
In July, the apex court had asked Setalvad to seek all the remedies, including quashing of the chargesheet filed on April 3, 2011, from the trial court or high court.
Earlier, the high court had declined to scrap the FIR against Setalvad, but allowed her application partly by quashing the summons, which had declared her as absconding.
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Setalvad is the main accused in the case and was booked under sections 192 (fabricating false evidence), 193 (punishment for false evidence), 201 (causing disappearance of evidence), 120B (criminal conspiracy), 295(A) (deliberate and malicious acts intended to outrage religious feelings) and 297 (trespassing on burial places) of the IPC.
Earlier, the Gujarat government, in an affidavit before the Supreme Court, had justified its probe against Setalvad in the case, saying she had actually planned and executed the digging of the graves, without any permission, in 2006.
It had also claimed that during the probe, it had emerged that "Teesta Setalvad, the petitioner herein, was the main accused, who actually planned and executed this operation of digging of graves near Pandarwada through her staff."
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