Judge H C Vora of the city sessions court acquitted Shehzad Ismail Rangrez on the ground that the police was unable to provide sufficient evidence that the bombs were in his possession and observed that the statements given by police officials were contradictory.
Shehzad was arrested on the basis of his wife's complaint.
The case was investigated by the Ahmedabad Crime Branch after Shahzad's wife Reshma Rangrez called up the police control room at 3 AM in July 2011 and informed officials that her husband who made crude bombs had threatened to blow her up if she quarrelled with him.
The case made headlines after Reshma was lauded by Gujarat Chief Minister Narendra Modi, who had tweeted: "Gujarat Home Minister to felicitate brave Reshma with a prize of Rs 25,000 for exposing her husband in national interest, 8 live bombs recovered".
Gujarat Home Minister Praful Patel, DGP Chitranjan Singh and Police Commissioner Sudhir Sinha had visited Reshma's house and handed over a cheque of Rs 25,000 to her. She was also offered a job in the city traffic department.
However, in February this year, she was attacked allegedly by her in-laws who threw acid on her for sending their son to jail.
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