The HC has given clean chit to Chandy just a day after he announced the terms of reference for a judicial probe into the matter.
The judicial probe would inquire into whether the chief minister's office and Chandy himself had a role in the "solar scam".
The court also pointed out that 33 cases have been registered in connection with the solar scam, and none of those whose made the complaints have so far questioned the fairness of the state police or the conduct of its investigations.
Chandy, asked for a response to the court's observations, said: "What can I say?"
The court's observations, however, come as major reprieve for Chandy, who has been put on the defensive by an aggressive Left opposition ever since the scam broke out in June this year, with the arrest of Saritha Nair.