Setalvad has been accused of fabricating evidence and tutoring witnesses to secure the convictions of top officials in Gujarat over the 2002 communal riots cases.
Coming down hard on observations made by the single judge bench of the high court against Setalvad, a three-judge Supreme Court bench headed by justice BR Gavai felt that the state had not made out a logical case for her custodial interrogation, as she was not once called for interrogation after the top court granted her interim bail on September 2.
"After release of petitioner on interim bail (on September 2), admittedly she has not been called for investigation. Considering the fact that most of the evidence is documentary evidence and charge sheet has been filed, we do not find that custodial interrogation of the appellant is necessary," the bench, also comprising justices AS Bopanna and Dipankar Datta, said.
Even the state's claim that she was a habitual offender with criminal antecedents was rejected by the court, which asked: "Has there been a conviction yet? What are the criminal antecedents? Is she involved in a case of murder?"
The court went on to order: "The impugned order (of the high court) is quashed and set aside. The appellant is directed to be continued on bail granted on September 2. The passport of the appellant already surrendered shall continue to remain in custody of the sessions court."
Setalvad was arrested on June 25 last year, a day after Supreme Court gave its judgment denying any larger conspiracy behind the 2002 riots. The judgment, which came on a petition filed by Gujarat riots victim Zakia Ehsan Jafri said: "All those involved in such abuse of process, need to be in the dock and proceeded with in accordance with law."
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