In a judgement delivered at a packed court hall, Judge R B Dharmagouder also exonerated nine other accused in the kickback case which had cost Yeddyurappa his Chief Ministership in 2011 following indictment by the then Lok Ayukta Santosh Hegde.
CBI had filed a chargesheet in October 2015 against Yeddyurappa, his sons B Y Raghavendra and B Y Vijayendra and son-in-law Sohan Kumar, a Bellary-based private steel company and a Shimoga based Trust run by the family of Yeddyurappa for alleged abuse of official position and corruption.
The accused had been charged with criminal conspiracy, cheating, forgery and corruption, according to the CBI chargesheet which had alleged involvement of Rs.40 crore kickbacks, including Rs 20 crore that was allegedly paid to a trust run by the Yeddyurappa's family, for granting favours, including mining licenses, during his chief ministership.
"Satyameva Jayathe. Justice is done. I stand vindicated," a relieved Yeddyurappa tweeted shortly after the verdict.
"I am happy that false allegations and politically motivated charges have been dismissed," the state BJP strongman, who has returned as the state BJP chief earlier this year, told reporters.
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