"There was absolutely no pre-planned conspiracy to butcher or kill members of the minority community, more particularly at Gulberg society," special judge P B Desai said in the order.
"The evidence...With regard to the elements of criminal conspiracy is extremely flimsy," it said.
The court sentenced 11 convicts to life imprisonment in the case related to the massacre where 69 people, including former Congress MP Ehsan Jafri, were burnt alive on February 28, 2002.
Testimony of one of the witnesses that Kapil Munna, an accused, told him that he was going to attend a meeting where the murder of Muslims would be planned was "uninspiring and downright ridiculous," the judge said.
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The prosecution had also referred to a visit by the senior police officers including the then police commissioner P C Pandey and joint commissioner of police M K Tandon to the Gulberg Society before the incident to assure the residents that there would be proper police security.
this, and "therefore, it would be unsafe and improper to even have further discussions on this aspect".
The sting operation by journalist Ashish Khaitan had "no evidentiary value" to establish the theory, it said.
Khaitan had filmed the accused Mangilal Jain, Prahaladji Asori, Madanlal Raval, Atul Vaidya, Bharat Teli, Meghsinh Roopsinh and police inspector K G Erda on hidden camera, but he did not provide the entire recording, and "material emerging from the (sting operation) does not inspire much confidence", said the court.