Police in India's Gujarat state killed an innocent Muslim man in a staged gun battle, the authorities have admitted.
They then accused him of plotting to assassinate state Chief Minister Narendra Modi, the Supreme Court heard.
A lawyer for the state said senior police officers were involved. "We are prepared to take immediate action."
The innocent man, Sohrabuddin Sheikh, was shot dead by anti-terrorist personnel in the state's largest city, Ahmadabad, in 2005.
Police at the time claimed Mr Sheikh belonged to the banned Kashmiri militant group, Lashkar-e-Toiba, and was plotting the assassination to avenge the death of hundreds of Muslims in riots three years before.