The trial court, however, did not agree with the closure report and decided in February 2009 to continue with the prosecution of the two men.
Ali's counsel M. Sufian Siddiqui then moved the high court against the lower court's order. He submitted that the CBI had conclusively demolished the entire case of the police with cogent evidence.
The Special Cell had said Ali and Qamar were in touch with Baig, a militant in Pakistan-administered Kashmir who heads the Jammu and Kashmir Islamic Front.
The Special Cell had said the duo's links with Baig were unearthed by police inspector M.C. Sharma, who was killed in a shootout with terrorists at Batla House in south Delhi last year.
Police said Sharma had found that Ali was in touch with Baig and other terrorists Jan 23, 2006.
However, the Special Cell in its charge sheet filed in a lower court May 6, 2006 had not mentioned the duo's links with Baig.