The Hyderabad High Court announcing the acquital also awarded Rs 1 lakh compensation for the trauma that Babu endured.

Ayesha Meera, a pharmacy student, was raped and murdered on December 26, 2007 in her hostel near Vijayawada. Her naked body was found in the toilet with legs and hands tied to the water tap.

Local reports claimed that a letter alleged to have been written by her lover was found beside the body. The killer also wrote "chirutta" in Telugu on the chest of the victim.

The police arrested Satyam on August 16, 2008, and a special women's court in Vijayawada pronounced Satyam guilty on September 29, 2010 and awarded him life sentence.

A division bench comprising of Justice CV Nagarjuna Reddy and Justice MSK Jaiswal hearing the appeal challenging the life sentencing observed that Satyam Babu was made a scapegoat in the case.

The prosecution failed to produce any evidence implicating Babu and the entire story of rape and murder was created by the police, the bench observed.

The police repeated maintained that Babu was the culprit - a claim which even opposed by the public, including Ayesha’s family parents, who suspected the role of bigwigs in the murder.

While setting aside the lower court’s order, the bench reprimanded the then investigating officers and directed the AP government to initiate disciplinary action against those officers.