Vibhor Anand, a law student, withdrew his complaint filed against Kejriwal in 2012 for his alleged remarks at a rally in Ghaziabad that parliament was filled with "murderers, rapists and dacoits".
Appearing before Metropolitan Magistrate Purshottam Pathak, he said Kejriwal is "doing a wonderful job as the chief minister of Delhi."
The complainant told the court that "Kejriwal is working very hard in order to fulfil the promises he has made to the people of Delhi" and therefore, he did not want to pursue the case any further.
The law student had moved the court in 2012 seeking a direction to the police to register an FIR against Kejriwal for allegedly insulting parliamentarians.
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The court had in November, 2012, dismissed his plea for registration of an FIR but allowed him to lead evidence to prove his allegations.
The case was pending at the stage of recording of evidence.
Similar pleas for FIR filed by him against yoga guru Ramdev and AAP leader Prashant Bhushan were also rejected by the court and they are also pending at the stage of leading of evidence.