Maoist leader Sabyasachi Panda's wife Subhashree Das was on Tuesday set free after being acquitted by a fast track court here due to lack of evidence in a shootout case in Odisha's Raigada district.

Gunupur Additional District judge B Pratap Chandra Patnaik, who had earlier reserved the verdict, acquitted Subhashree alias Mili Panda due to lack of evidence.

Subhashree was arrested and sent to jail in 2010. She was accused of involvement in the exchange of fire between Maoists and security forces in Kutinguda forest of Gudari area in 2003.

The development is significant because Maoists had set her release as one of their several demands in return for the release of abducted Italian national Paolo Bosusco.

Bosusco was taken hostage by the CPI(Maoist) faction led by Sabyasachi Panda.

Subhashree, who had been first arrested in a case relating to Unlawful Activities (Prevention) Act in January, 2010, was acquitted by the high court in September 2011.

However, she was again arrested in connection with the Kutinguda encounter case.