Vijay Sai surrendered before the court on April 23 after the Andhra Pradesh High Court cancelled his earlier bail on April 20.
The HC had said his bail plea can be considered by the trial court afresh.
After hearing arguments, the lower court today granted him bail. Judge Nagamaruti Sarma directed that Vijai Sai should not leave Hyderabad without permission, and execute a bond for Rs 25,000 with two sureties of the like amount.
He will have to deposit his passport with the court and make himself available for questioning by CBI.
CBI lawyer had argued that if released, Reddy may tamper with witnesses and evidence.
Vijay Sai, a financial adviser of Jagan's companies and family auditor of former Andhra Pradesh Chief Minister, the late YS Rajasekhara Reddy, was the first person to be arrested in this case, in January.
On March 31, CBI filed charge-sheet against Jagan and 12 others including Vijay Sai. Jagan is accused of getting investments from firms into his own businesses as a part of quid-pro-quo for favourable decisions during his father's tenure as the CM.
According to the central agency, Vijay Sai was involved in laundering the "ill-gotten" money by floating fictitious firms.
Hyderabad: A CBI court on Monday granted bail to Jagati Publications Pvt Ltd vice-chairman V Vijay Sai Reddy in the corruption case involving Kadapa MP, YS Jaganmohan Reddy.
First Published: Monday, April 30, 2012, 22:50