Zahira Sheikh said she could not identify any of the 17 Hindus she had earlier accused of killing her father and 11 other Muslims during riots two years ago.
The Gujarat riots were sparked after 60 Hindus on a religious pilgrimage burned to death in their train car when it was attacked.
Zahira Sheikh had given a police statement identifying her father's killers, but Tuesday disputed that testimony. She has changed her testimony before and recently accused a human rights activist of pressuring her to make false statements.
Four of her family members also have recanted their testimony in the case.
Some information for this report provided by AP and AFP.