"Rajesh and Nupur Talwar are happy, and said that they have got justice," DR Maurya, jailor at Dasna said.
The Talwars had filed an appeal with Allahabad High Court challenging a CBI court order convicting them for the murder of their daughter Aarushi and domestic help Hemraj.
Rajesh Talwar's sister-in-law Vandana Talwar said: "I am deeply relieved. They had suffered for ten years. We are grateful to the High Court for acquitting them."
Fourteen-year-old Aarushi was found dead inside her room in the Talwars' Noida residence in Noida with her throat slit on the night of May 15-16.
"Grateful for the acquittal of Rajesh and Nupur," Aarushi's grandfather told the media.
Talwars' domestic help Hemraj was initially suspected of the murder after he was found missing, however, his body was recovered from the terrace a few days later.
Aarushi's father Rajesh Talwar was arrested seven days after his daughter's murder by the Uttar Pradesh police on May 23, 2008, after a 50-day jail he was let off on bail on July 11.
The police had taken the domestic help for interrogation as well but failed to gather any evidence. The police then suspected the Talwars and said Rajesh Talwar had murdered Aarushi shifting the focus of the investigation.
In 2009, the CBI had handed over the investigation to a new team, which in 2010 recommended closing the case due to critical gaps in the investigation.
It named Rajesh as the sole suspect based on circumstantial evidence but refused to charge him because of lack of evidence.
The court refused to allow the CBI to close the case.