There had been 19 terrorism cases pending with the court against Sufi Muhammad.
During the hearing, ATC judge Abdul Rauf after listening to the arguments of parties dropped down 16 cases against the TNSM chief.
The ATC also ordered to transfer remaining three cases against him to relative courts.
On the occasion, police produced Sufi Muhammad before the court under stringent security.
Sufi Muhammad bin Alhazrat Hassan, born in Dir, is the founder of TNSM, an organization declared a terrorist outfit and banned in 2002, vying for implementation of Sharia in Pakistan.
It operates mainly in the Dir, Swat, and Malakand districts of Khyber Pakhtunkhwa.
Sufi Muhammad is the father-in-law of Mullah Fazlullah, who assumed the leadership of TNSM during Sufi’s imprisonment and is currently heading the banned Tehreek-e-Taliban Pakistan (TTP).