Porbandar Additional Sessions Judge M V Zala acquitted Samat Gogan, Bhima Dula Odedara, Lakshman Bhima Odedara, Meraman Langi and Karsan Bharvadiya, besides five others for lack of evidence against them, said Public Prosecutor K V Panara.
Babubhai and the ten others had been booked in connection with the murder of Mulubhai Modhvadiya in Porbandar on November 16, 2005.
Babubhai's plea to quash his name as an accused in the case is pending with the Supreme Court.
"Even the Gujarat High Court has refused Babubhai's plea to drop his name from the case and we are awaiting the Supreme Court's judgement," he said.
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Babubhai, along with Bhima Dula Odedara and Lakshman Bhima Odedara, were earlier awarded three years imprisonment by a Porbandar court for illegal mining of limestone.
Babubhai challenged the verdict in a higher court and got a stay.
Mulubhai, said to be the business rival of Babubhai, was close to the current state unit Congress president Arjun Modhvadiya.
The widow of the slain businessman, Lakhiben, had earlier filed a petition in the Gujarat High Court and produced a letter purportedly written by her late husband, stating that if he was killed, Babubhai should be held responsible.