Vasily Boiko, who heads the investment and land development company VFP, was arrested in February 2007 on charges of illegally purchasing nine agricultural enterprises in the Moscow Region to implement an ambitious luxury housing project.
Boiko was released on bail on October 2. However, the businessman was re-arrested on Tuesday following a request by prosecutors in line with another case opened in 2005 against him in connection with coercion and fraud charges.
A judge ruled on Thursday, however, that, "The court finds no reasons for the arrest [of Boiko], the investigator's arguments are unconvincing and are not based on evidence."
Boiko was released in the courtroom.
The judge sided with Boiko's defense lawyers, saying that the prosecutors had artificially divided one criminal case into several parts in order to be able to re-arrest their client.
The court's decision can be appealed within three days.
Executives from the VFP company have alleged that the criminal investigations into Boiko were organized by his business rivals.
