Vanzara's brother K G Vanzara and son Prithvi were in the court when the ruling was pronounced.
The family members greeted and hugged each other outside the courtroom of Special CBI Judge K R Upadhyaya.
Vanzara's brother said it was victory of truth.
"Terror activities hinder development of the country. As our Prime Minister Narendra Modi has rightly said, terrorism is a crime against the humanity. We should support the people who fight against terrorism," he said.
In September last year he resigned from the service, writing a letter which alleged that the then state government headed by Modi failed to protect jailed police officers' interests, who had fought a war against "Pakistan inspired terrorism".
