"Prosecution informed the Islamabad Anti-Terrorism Court which held the hearing at Adiala Jail Rawalpindi yesterday that no evidence had been found against suspect Sufyan Zafar during investigation," a court official said today.
The prosecution said that the suspect had not provided money to terrorists involved in Mumbai attacks. It said Zafar had deposited Rs 14,800 to the bank account of his brother and not to a terror suspect.
The court, however, directed the prosecution to file a separate challan of the suspect under section 512 of CrPc.
The court adjourned the proceedings till Oct 26.
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Zafar was hiding after being declared proclaimed offender in the Mumbai case since 2009. He was arrested early last August from his hideout in Khyber-Pakhtaunkhawa province.
A resident of Gujrawala district of Punjab, Zafar is among 21 other (absconding) suspects wanted in the case.
He was accused of financing Rs 14,800 for Mumbai attack and providing Rs 3.98 million to co-accused Shahid Jameel Riaz prior to the attack.
The Federal Investigation Agency earlier declared that it had found 'no evidence' against Zafar during investigation.
Prime suspect LeT operations commander Zakiur Rehman Lakhvi, believed to be the mastermind of the Mumbai attacks, has been in hiding after getting bail over a year ago.
Some 166 people were killed in the attack carried out by 10 LeT men. Nine terrorists were killed while lone survivor Ajmal Kasab was captured and later executed.