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

The Khordha district and sessions court granted him bail against a bond of Rs.1 lakh and two sureties while asking him to depose before the CBI every Sunday and co-operate with the agency in investigation.

Mohanty was granted bail as the prosecution failed to prove charges of criminal conspiracy levelled against him, said his lawyer Asim Amitav Das.

"CBI is not an impartial and independent investigating agency. Its investigation is not fair. They are every day concocting and manufacturing documents in order to see that I am implicated in this case," Mohanty told reporters after his release from the city jail here this evening.

"I have strong suspicion that CBI is acting at the behest of somebody. I will take further steps to prove and expose the CBI and its investigation" he said adding that the CBI was using him to defame the state government.

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.

Hearing Mohanty's bail plea Thursday, the Odisha High Court had asked his counsel to move the Khordha district and 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.