The verdict is a major blow to former Maldivian President Mohammed Nasheed who emerged as the winner in the first round.
The first round of fresh presidential poll must be held before the 20th of this month and the second round, if necessary, should be before the 3rd of November 2013, the apex court directed.
The ruling came after a case was filed by the Jumhooree Party (JP) leader Qasim Ibrahim, alleging serious irregularities.
"The Supreme Court's judgement was based on the fact that 5,623 votes were cast fraudulently. These include votes cast using false ID cards, in the name of the deceased, by minors, votes cast without a valid ID card, issues of double voting, votes cast using ID cards with conflicting permanent addresses and name differences as well as votes cast by those not registered under the Department of National Registration(DNR).
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"It was held that these 5,623 votes are sufficient to significantly alter the positions of the candidates that came 2nd and 3rd in the Election which was 2,677 votes," he said.
The voter list must also be signed and finger-printed by all the presidential candidates and be visibly displayed to all. Furthermore it was held that the security features of ballot slips must be enhanced, the court said.