But on greater examination, he said: ''I find that she has not been truthful with the court and that I am unable to rely on her.''
The woman remains in a witness protection program.
Josephson gave similar assessments about many of the other major prosecution witnesses. The star witness against Bagri had testified the accused told him, ''We did this,'' when talking about the bombing outside a New Jersey gas station.
Josephson, however, said the man was motivated by self-interest.
He was willing ''to engage in deception and lies, even under penalty of perjury, whenever he believed it would advance his self-interest,'' he said in dismissing the evidence.
Reporters were barred from identifying any of the witnesses.
Investigators believe the Air India bombing was masterminded by Talwinder Singh Parmar, leader of the extremist Babbar Khalsa group that advocates creating a Sikh state called Khalistan in India's Punjab region. Parmar was killed by Indian police in 1992.
Malik worked as a taxi driver after arriving in Canada from India in 1972 and built up business holdings, becoming a driving force behind the Vancouver-area Khalsa Credit Union with assets of more than US$1 million.
Bagri arrived in Canada in 1968, according to court documents, and was a mill worker.
A third man in the case, alleged bomb-maker Inderjit Singh Reyat, pleaded guilty Feb. 10 to one count of manslaughter and was sentenced to five years in jail.
After Reyat's guilty plea, Malik and Bagri chose a trial by judge. Reyat previously served a 10-year sentence for his 1991 conviction in the Tokyo airport bombing.
Retired Canadian Supreme Justice John Major said the probe was the only route left to find out what happened in the 1985 bombing.
The witness said he only agreed to meet with the militants to gather information for law-enforcement authorities. He said he warned both the Vancouver police and the Royal Canadian Mounted Police...
In 1985, all Air India flights from Canada were supposed to be treated with a high level of scrutiny by the RCMP because of repeated threats.
Airport security will no longer require screeners to pat down head coverings of Sikhs, Muslims if they agree to alternative measures