With this order, the court disposed of the special investigation team's plea for a non-bailable arrest warrant.
Gadoli, an alleged gangster from Haryana, was killed by a team of Gurgaon police at a city hotel in an encounter in February. His relatives alleged that it was a fake encounter and filed a police complaint.
"The investigating officer has the liberty to take every possible step/further necessary action as per the provisions of the Criminal Procedure Code to arrest the accused," said Magistrate R K Deshpande.
SIT of Maharashtra police, which is probing the encounter, had moved the magistrate's court seeking a non-bailable warrant against the Gurgaon police officials.
SIT had said that the Gurgaon police were not cooperating with the probe.