Bhubaneswar, Sep 26 (IANS): A court in Odisha Friday granted conditional bail to former Odisha advocate general Ashok Mohanty, who was arrested by CBI for his alleged involvement in a chit fund scam.

The Khordha district sessions court allowed the former advocate general bail against a bond of Rs.1 lakh and two sureties. He was also asked to depose before the CBI every Sunday.

The court has asked the former advocate general to co-operate with the CBI in its investigations.

The court allowed Mohanty to go on bail as the prosecution failed to prove charges of criminal conspiracy levelled against Mohanty, said Mohanty's lawyer Asim Amitav Das.

Mohanty was in judicial custody since his arrest by the CBI Sep 22. The investigating agency had taken Mohanty on two days' remand after the arrest. On Sep 24, his bail plea was rejected in the special CBI court and he was sent to judicial custody till Sep 30.

The bail plea of Mohanty was heard in the high court Thursday which asked the former top law officer to move the lower court for bail.

The Odisha High Court had asked Mohanty’s counsel to move the Khordha district sessions court for bail and directed the CBI to submit the case diary and related documents.

Mohanty was arrested for his alleged link with Artha Tatwa Group, which allegedly cheated thousands of people in the state by forming chit fund companies in the state.