Mumbai (PTI): Two British nationals and an Indian, who were accused of indulging in paedophilia with children staying in shelters being run by them, were acquitted by the Bombay High Court on wednesday due to lack of evidence.

British nationals-Duncan Grant and Allen Waters had set up three children's shelters called 'Anchorage' for economically backward children in which they were accused of indulging in paedophilia. While, William Desouza, who helped run the shelters, was accused of aiding them.

Justice Bilal Nazki delivered the judgement in his chambers today in which all the three accused were acquitted.

"The case of the prosecution has been disbelieved due to which the three have been acquitted," Tariq Sayyed, defence counsel for Grant and Waters, said after the judgement.

"We had argued that the two boys, who had given evidence against the trio as witnesses, could not be believed and the same has been accepted by the court," he said.

The trio were convicted by a sessions court in March 2006 and the two Britons got six years rigorous imprisonment. D'souza had been sentenced to three years imprisonment.

They had appealed to the Bombay High Court seeking an acquittal, while the State had appealed for an enhancement of the sentence, which was struck down.

All the three are presently lodged at the Nagpur jail and were expected to be released soon, Sayyed said.

The NGO Childline, which had filed the police complaint against Grant and Waters, has sought a stay on the judgement and it is to be heard by the court on Thursday, Yug Mohit Chowdhary, counsel for the NGO, said.