Justice C R Kumaraswamy overturned the September 27, 2014 verdict of a special court in
The special court had sentenced Sasikala, Ilavarasi and Sudhakaran to four years in jail and fined Rs 10 crores each.
The judgement by the special court had disqualified her from the post of CM and legislative assembly of Tamil Nadu.
Now, her acquittal by the Karnataka high court means she can assume the chief minister's post. Jayalalithaa is expected to address the press on Monday.
AIADMK supporters started celebrations as soon as the high court pronounced it verdict. They celebrated sweets.
A large number of her supporters assembled in front of Jayalalithaa's residence in Chennai, expecting she will greet them soon.
The party workers, who have been praying for her acquittal in the case, broke coconuts as thanksgiving.