Canadian university student Tahmid Hasib Khan, who walked on bail after police said he had no link with the Dhaka attack of July 1, has been cleared of the charges brought against him under section 54.

Former private university teacher Hasnat Karim, the only other detainee caught over the incident, stays as the key accused of the case filed over the terrorist attack.

The duo who were both present in flesh during the 12-hour-long siege at Holey Artisan Bakery were caught on suspicion under Section 54 before Hasnat was shown as an accused.

Metropolitan Magistrate Md Nur Nabi passed the order after Humayun Kabir, an inspector of counter terrorism unit and investigation officer, appealed for clearing Tahmid.

The case investigator told the court that Hasnat Karim was earlier shown arrested in the case. So, he should be discharged of the section 54 charge.

Arrest made under section 54

Hasnat, who taught at North South University, was arrested from Gulshan and Tahmid from Bashundhara on August 3 on suspicion of having links with Gulshan attackers.

Police arrested both Tahmid and Hasib under section 54 of the Code of Criminal Procedure (CrPC) and said they were instigators of Gulshan café attack.

READ MORE: Hasnat, Tahmid sighted finally

A Dhaka court placed them on eight days remand on the same day.

Tahmid freed on bail

Tahmid, who had been detained over the Gulshan café siege, was released on bail on Sunday (October 2).

He was released after police turned in a probe report with a prayer for relieving him of the accusation that he had involvement in the terror attack. 

In the prayer, police said they found no evidence of his links to the Gulshan attackers or any other militants.

On July 1, the attackers killed 20 hostages -- nine Italian, seven Japanese, two Bangladeshis, one Indian and one Bangladesh-born US citizen -- and two police officers.