Prosecutors on Monday suddenly dropped the charges against ruling party city council member Zaidul Ameen in the middle of the trial.
Ameen who represented ruling Progressive Party of Maldives (PPM) in the Male City Council has been charged with blackmailing top government officials and was taken into custody on January 13.
A hearing had been scheduled at 1pm on Monday when the court was informed of the prosecutor's decision to drop the charges.
Ameen was facing three separate charges including illegally obtaining and disclosure of confidential information and obstruction of rule of law.
The sudden decision by the prosecutor came after Ameen had switched from deposed PPM leader Maumoon Abdul Gayoom's faction.
Ameen was the first to accuse the former president Gayoom of bribing top court judges in a bid to overthrow the government.
The island nation has been embroiled in fresh political turmoil after the Supreme Court on February 1 ordered the immediate release of jailed political leaders including self-exiled former president Mohamed Nasheed.
President Abdulla Yameen Abdul Gayoom had declared a 15 day state of emergency after his last ditch attempt to convince the top court to revoke the order failed as the apex court rejected the government's 'legal and judicial' concerns over the order.
Since emergency state was declared police have made a series of high profile arrests including Gayoom, two lawmakers, chief justice Abdulla Saeed, top court judge Ali Hameed and the chief judicial administrator.
Less than a day after the arrest of the two judges, the remaining three judges rescinded its ruling to release the political leaders referring to the concerns raised by president Yameen in the letters he had sent to the chief justice hours before state of emergency was declared.
Police on Sunday had claimed that new evidence had been uncovered in connection to the plot adding that a total eight people had been arrested thus far over the case.
In the statement, police had claimed to have uncovered document evidence implicating the suspects to the case revealing that over USD200,000 along with over MVR150,000 were found in a bag that belonged to judge Ali Hameed.
Police also said judge Ali Hameed had purchased a flat with the bribe money and an unnamed company had "loaned" over USD2 million to the judge.
The latest accusations came after police had confirmed Gayoom had bribed the judges into issuing the order in a bid to overthrow the government.
The accusations against Gayoom included bribing lawmakers and judges to influence their authority while the deposed ruling party leader has also been accused of creating discord within the security forces to back the overthrow of his half-brother's government.
The two top court judges are accused of accepting bribes to influence Supreme Court rulings, abuse of power and blocking the functioning of the entire justice system.
In addition to Nasheed, the other top political leaders named in the now rescinded order included Jumhoory Party (JP) leader Gasim Ibrahim, religiously conservative Adhaalath Party (AP) leader Sheikh Imran Abdulla, former defence minister Mohamed Nazim, former vice president Ahmed Adheeb Abdul Ghafoor and Gayoom's lawmaker son Faris Maumoon.
Former prosecutor general Muhthaz Muhsin, magistrate Ahmed Nihan and Adheeb's brother in law Hamid Ismail make up the rest of the list.
