The Liberhan Report gives a clean chit to Narasimha Rao who was Prime Minister when Babri Masjid was demolished.

It says, "He ( Narasimha Rao) rightly concluded that neither the central forces could be deployed by the Union in the totality of facts and circumstances then prevailing; nor could President's rule be imposed on the basis of the rumours or media reports. Taking such a step would have created bad precedent for the future, damaging the federal structure of the constitution and would have amounted to interference in the state administration"

Justice Liberhan's report says that the central government, under Narasimha Rao, was "caught daydreaming" and allowed itself to believe the "false promises" of the BJP.  

Once again slamming  Kalyan Singh,  who was then the BJP's  chief minister of UP, the report says, "The onus for the campaign of disinformation must rest solely with the State Government who deliberately and consciously understated the risk to the disputed structure and general law and order."

Also see: What is the Liberhan Commission?