Announcing the verdict on Thursday, Special CBI Judge Bharat Parashar said the prosecution had miserably failed in proving any of the charges against the former bureaucrat.
Delhi-based Pushp Steels and Mining Pvt Ltd (PSMPL) was allotted the Brahmapuri coal block for its proposed Sponge Iron End Use Project in Durg district following the Screening Committee's recommendation even though the Ministry of Steel found the company ineligible for allocation of any captive coal block.
The probe agency alleged that the company had no experience in steel manufacturing and or required capital for starting mining operations.
However, it got the mining lease on Gupta recommendation, who was the chairman of the Screening Committee and also the Coal Secretary from December 31, 2005 to November 2008.
The CBI alleged that the company was allocated the Brahmapuri coal block based of false information that it possessed an iron ore mining lease, though it had none.
"It was further alleged that the company did not have any experience in steel manufacturing and the net worth of the group companies/firms was around Rs 3.01 crore, which was insignificant," the agency said.
Gupta's counsel advocate Rajat Mathur had denied the allegations and claimed that the case filed by the CBI was "false".
( With inputs from IANS )