District and Sessions judge Poonam Singh pronounced the sentence after she had found 18 people guilty of murder and criminal conspiracy and five others for attempt to murder and criminal conspiracy on Monday.
The court also imposed a fine of Rs 5,800 each on the accused sentenced to life imprisonment and Rs 3,800 each on the five convicts awarded jail term for seven years.
The pronouncement of the verdict caused uproar among the family members and relatives of the convicts who were standing inside the court campus and many of them broke down.
"There is no evidence against the accused. This is injustice, this is not the temple of justice but temple of injustice," the relatives alleged.
More than 100 people, including women and children, who were gathered at the campus, resorted to sloganeering. However, police removed them out of the campus.
Twenty-three people, including nine women and as many children of the minority community, were burnt to death in a house in Pirwali Bhagol area of Ode village by a mob of over 1,500 on March 1, 2002 following the Godhra train burning incident that had triggered a communal conflagration across the state.
Out of the total 47 accused, the court had convicted 23 and acquitted as many and one of them had died during the course of trial.
Meanwhile, counsel Ashwin Dhagad said that the defence would challenge the verdict in the high court.
"Statements of witnesses have been contradictory and how the court has appreciated those facts that we will come to know only after we get the copy of the judgement," he said.
Special Public Prosecutor P M Parmar said, "Court has declined our plea for capital punishment for the murder accused. However, it has sentenced 18 people to life imprisonment. We will be studying the order of the court and then decide on the future course of action whether to appeal for capital punishment in the higher forums and also decide to appeal against the acquittal of 23 others".
More than 150 witnesses were examined by the court, while over 170 documentary evidences were also placed before the court. The trial began in the end of 2009 and was on the verge of completion when the then judge hearing the case resigned in May 2011 citing personal reasons.
Following this, Judge Singh was appointed and all the arguments were made afresh before her.
This is the second major post-Godhra riot case where more than 18 people have been sentenced to life imprisonment.
Earlier, in the Sardarpura riot case of Mehsana district 31 persons were awarded life term and 42 others were acquitted.
In the Godhra train burning case, court had awarded death sentence to 11 people and 20 were given life imprisonment.
Ode riot case is one of the nine cases that was probed by the Supreme Court-appointed Special Investigation Team led by former CBI director R K Raghavan.
Photos: Salman Khan's 'special friend' Iulia Vantur at a song launch
In Pictures: Sex scandals involving Indian politicians
Photos: Sports stars who shocked the world with their retirement
Photos: Abhishek Bachchan and Farah Khan at Boman Irani's birthday bash
Spotted: Shah Rukh Khan at Morani's bungalow in Mumbai