The court also quashed the case against Jayarajan's nephew and CPI(M) central committee member P K Sreemathy's son Sudheer Nambiar, who was the second accused in the case, and state industries secretary Paul Antony.
Allowing the petition filed by Jayarajan, Justice P Ubaid criticised the Vigilance and Anti-Corruption Bureau (VACB) questioning why such cases, which will not withstand judicial scrutiny, were filed.
Giving a clean chit, the VACB had earlier informed the court that offences "may not lie" against Jayarajan.
In its report, the VACB had said the appointment order to the relative was issued on October 1, 2016 and a note was issued two days later cancelling the appointment.
Thereafter, a government order was issued on October 13, cancelling the appointment order, the report had said.
On April 10, the vigilance prosecutor had informed the court that no criminal offence was detected and the case against Jayarajan was going to be closed.
The appointment was later quashed by the government.
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