After nearly one-and a half year of probe, CBI came to conclusion that there was not enough evidence on the record on the basis of which he could be made charged in the case, they said.
The sources said CBI has informed about the status of the case to the High Court in a report filed in "sealed cover".
They said High Court was free to order the agency on the future course of action.
The case relates to allegations that the mall was illegally built on a residential plot of one lakh square feet, with undue concessions from the then state government under Chief Minister Digvijay Singh.
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In its order on October 19, 2012 division bench of justices P K Jaisawal and Moolchand Garg had directed the CBI to probe the matter and report back in six months.
It filed a closure report giving clean chit to Singh, while saying there was a case against six others including the developers.
After the closure report, Garg filed a PIL in the High Court.