Justice Vibhu Bakhru was also told that this matter was sent to the "department for taking such action as deemed fit in the matter".
"The allegation of photo morphing was enquired into during the preliminary enquiry (PE) of... During the course of enquiry, witnesses were examined and documents were collected.
"However, after the enquiry, CBI was of the view that the allegation of photo morphing could not be substantiated as there was no sufficient incriminating admissible evidence for prosecution," status report filed by CBI's standing counsel R V Sinha said.
CBI in its report also said that various allegations were probed including photo morphing and on this basis three regular cases were registered against Rakesh Kumar, former director general Indian Council for Cultural Relations (ICCR).
The agency further said that the three cases did not pertain to the photo morphing issue.
The court has given the direction after Azad's grandnephew Firoz Bakht Ahmed alleged that the morphing was done at the instance of Heptulla when she was heading ICCR.
The controversial photograph showing Azad seating with Heptulla after her graduation was published in ICCR publication titled "Journey of a Legend, on the life of India's first Education Minister". The publication was later withdrawn by ICCR.
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