Mr Ahmad, from Fountain Road, Tooting, was imprisoned without trial following an extradition request from the US.
A petition calling on the Government to put him on trial in the UK gained over 100,000 signatures, enough to trigger a parliamentary debate last week.
But his case was discussed as part of an existing debate on extradition in Westminster Hall in front of just 35 MP’s, to the dismay of members of the Free Babar Ahmad campaign.
Mr Ahmad’s family are now hoping to move the case to a full debate in main chamber of the House of Commons.
Green MP Caroline Lucas revealed during the debate Mr Ahmad’s solicitors and the CPS had admitted in a letter dated November 22 they never analysed the evidence in relation to his case.
They previously told Mr Ahmad there was insufficent evidence to charge him in the UK Ashfaq Ahmad, Mr Ahmad’s father said: “It is quite shocking to learn that the CPS made no effort to examine the evidence seized from Barbar’s home but instead simple outsourced our criminal justice system to the US.
“Had it examined the evidence then it could have prosecuted Babar in the UK.”
Mr Ahmad, an IT technician at Imperial College, London, was alleged to be the leader of a small UK based group providing “logistical support, financial assistance, recruits and computer expertise” for overseas Jihadi groups.