The court also ordered that Gujarat cadre IPS officer Satish Verma, who is one of the officers investigating the case, be sent back to the state from 23 June.
"Prime facie, we find that instead of investigating the genuineness of the encounter, the CBI has focused more on the genuineness of the inputs provided by the IB," a division bench said.
"As directed by the court during last hearing, investigating officer of CBI today filed the progress report of its probe in a sealed cover before Registrar (Judicial) Gujarat High Court," said advocate Yogesh Rawani, who is representing the central agency.
Chetan Bhagat has landed in another controversy after Gujarat High Court noted that the language of Bhagat's novel 'Three mistakes of my life' is pornographic.
The Gujarat High Court today temporarily stayed the trial against suspended IPS officer Sanjiv Bhatt in a 16-year-old case of custodial torture in Porbandar.
The Gujarat High Court has admitted two appeals challenging a fast track court order which acquitted 120 accused in the 2002 post-Godhra riot of Visnagar, where two elderly Muslims were killed and their bodies were never recovered.