The Gujarat High Court granted bail to former junior state home minister Amit Shah in the Sohrabuddin Sheikh fake encounter case.
Shah, a key aide of Gujarat chief minister Narendra Modi, was arrested by the CBI on July 25 on charges of criminal conspiracy, extortion, murder, destruction of evidence and threatening witnesses in the fake encounter killing of Sheikh.
While allowing Shah's bail plea, Justice RH Shukla directed him to produce a bond of Rs 1 lakh and present himself before the CBI office once a month.
A special CBI court had rejected Shah's bail application on October 8.
The CBI is likely to approach the Supreme Court, seeking cancellation of Shah's bail.
"We will study the court's order and then explore the options available to us," a CBI official said.
Shah's counsel Ram Jethmalani had said that the CBI was "working at the behest of the UPA to implicate Shah on the basis of fabricated evidence".
CBI counsel KTS Tulsi argued that more than a dozen witnesses had testified to Shah's alleged involvement in the fake encounter in November 2005 and the subsequent killings of Sheikh's wife Kauser Bi and associate Tulsiram Prajapati, a key witness in the case.