In a statement released here, the former Supreme Court judge said many such persons in jail belong to minorities who have been accused only on suspicion and on pre-conceived notions that all persons of that community are terrorists.
Whenever a bomb blast or such other terrorist event occurs, the police often are unable to trace the real culprit and often rushes to implicate youths of minority community on mere suspicion, Katju said.
He said it had been decided by a group headed by him, which included lawyer Majeed Memon, film producer Mahesh Bhatt and others to set up an organisation called 'The Court of Last Resort'.
He added an organisation founded in 1948 by eminent American criminal lawyer Erle Stanley Gardner had provided the idea.
Katju said the 'The Court of Last Resort' will examine the cases and find out whether there has been injustice. It may also apply for pardon, respite etc to the President or Governor as the case may be, he said.