A division bench of justices A K Ganguly and J S Khehar asked the high court and the official liquidator to take steps for protecting the interest of the investors.
The court, however, said that the order for the cancellation of bail will come into effect after eight weeks.
Sharma, who is facing prosecution across the country on complaints filed by the investors, has never been behind the bars as the apex court had granted bail to him way back in March 2000 after the scam was unearthed.
The apex court bench passed the order on plea of one of the investors, Anjali Karnwal, seeking cancellation of bail granted to Sharma.
"Having regard to the materials which are disclosed before us, we find that Sharma has prima facie indulged in an abuse of the liberty granted to him by the order of this court.
"We are of the considered opinion that in interest of justice, he is not entitled to the liberty granted to him by the said order. The order passed on March 28, 2000, granting bail to V K Sharma, therefore, stands cancelled," the bench said.
The petitioner's counsel Anil Karnwal had contended that Sharma was misusing his liberty and the protection given to him be withdrawn as many new complaints have been filed against him after he was granted bail.
The CBI also supported the plea of the petitioner and pleaded for cancellation of bail.
The bench also directed Sharma to resolve all disputes with investors and asked the high court to protect investors' interest.
"We request the high court and also the official liquidator to take steps for protecting the interest of the investors. We are passing this order considering the interest of the investors and we make it clear that period of eight weeks will not be extended further," the bench said.
"We make it very clear that we are giving a last chance to the writ petitioner to resolve the ongoing disputes with the investors so that the interest of investors is protected." said the bench.
The Supreme Court had earlier called for the status report from the various investigating agencies which had told the bench that Sharma was clearly misusing the liberty granted to him and they won't be able to make any headway in the investigation unless Sharma cooperated.
Allowing the plea for bail cancellation, the bench observed that every individual as an accused has personal liberty to approach appropriate court to get relief.
"We are aware of the precious right of personal liberty guaranteed under our Constitution. We are of the view that when criminal cases are filed against citizens, they have right to approach the courts with prayer for bail," said the bench.