The CBI court on Monday granted bail to YSR Congress president Jaganmohan Reddy in the disproportionate assets case.
The Kadapa MP was arrested in May 2012 for alleged investments made by private firms and individual investors in his companies as a quid pro quo to gain government favours from his father and former Chief Minister, the late YS Rajasekhara Reddy.
The special CBI court accepted Jagan's bail plea after CBI ascertained it had completed its two-year long investigation in the case.
The court allowed the Andhra leader to walk out of Chanchalguda Central jail on condition that he won't leave Hyderabad and will have to pay a surety of ₹2 lakh. Jagan will also have to appear whenever he is summoned by the court.
Hoards of supporters of YSR Congress, which Jagan and his family founded after quitting the Congress party in 2011, swarmed the gates of Chanchalguda jail on Tuesday.
Security was tightened around the prison and a massive police force was deployed.
Jagan's release may boost the morale of his party cadre but he is not allowed to address any rallies outside the Andhra Pradesh capital for the elections next year, going by the court order. Observers believe that he will emerge successful again in Andhra-Rayalaseema regions as his party stood for a unified state.
While in jail, Jagan had begun an indefinite fast against the formation of Telangana.
The bi-furcation issue has led to internal problems in the YSR Congress, which was originally founded by a Telangana-based advocate in 2009. In the Telangana region, the YSR Congress has been virtually reduced to nothing, reported PTI.
During Jagan's absence for nearly 16 months, his mother Y S Vijaya Lakshmi and younger sister YS Sharmila firlmly held the party mantle.
With restrictions over his movements within the home state, Jagan will now need time to graph the popularity he had once attained during his 'Odarpu Yatra', after his father's death in 2009.