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The court is expected to pronounce the quantum of punishment on Thursday afternoon.
The sessions court held Bhatt guilty of falsely implicating a Rajasthan-based lawyer by claiming that in 1996 police had seized drugs from a hotel room in Palanpur where the lawyer was staying.
Bhatt, who was sacked from the Indian Police Service in 2015, was then serving as the superintendent of police of Banaskantha district.
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However, the Rajasthan police later said Rajpurohit was falsely implicated by the Banaskantha police to compel him to transfer a disputed property located at Pali in Rajasthan.
Former police inspector I B Vyas had moved the Gujarat High Court in 1999 demanding a thorough inquiry into the case.