Additional Sessions Judge Reetesh Singh granted the relief to Uttar Predesh resident Irfan Ahmed, who was alleged to be a close aide of LeT's alleged bomb maker Abdul Karim Tunda.
The court passed the order after noting that the special cell of Delhi police only had disclosure statements of some other accused arrested in a separate case of arms and explosives against Ahmed, which was not admissible in law.
"For the reasons recorded above, the accused Irfan Ahmed is discharged," the court said.
51-year-old Irfan has been accused in several cases and was held guilty in 1999 by a Delhi court in one such case.
Irfan was arrested when he had reached his native place last year after escaping from a Nepal jail where he was lodged.
The agency had claimed that in 2001, the accused had jumped parole in the serial train blast cases of 1993 and fled to Nepal and set up his base there for providing logistics to the LeT terrorists as a transit camp between India and Pakistan and used to route the funds of the outfit.
Besides, the accused was held guilty a trial court in a separate terror case in which a huge consignment of explosive materials was recovered from south-Delhi in 1994.
In its charge sheet filed against Irfan in the present case, the Special Cell of Delhi police had claimed that the accused was involved in infiltration of terrorists in India through he Indo-Nepal border.
In FIR filed in 2006, the Special Cell of Delhi police had sought the prosecution of Irfan for the offences committed under several sections of IPC and under provisions of Unlawful Activities (Prevention) Act and Explosive Substances Act.
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