The CBI court on Monday granted bail to YSR Congress president Jaganmohan Reddy in the disproportionate assets case.

Reddy, who was arrested on May 27, 2012 and was in Hyderabad’s Chanchalguda jail for more than 16 months as a remand prisoner. The court today granted him reprieve on condition that he wouldn't leave Hyderabad, would respond to court summons and pay a surety of Rs 2 lakh.

The case relates to alleged investments made by private firms and individual investors in Jagan’s companies as a quid pro quo for government favours when his father, late YS Rajasekhara Reddy, was the chief minister of Andhra Pradesh.

The supreme court had earlier said that the Kadapa MP’s bail would be considered only after the chargesheet against him was completed.

Prime accused in a disproportionate assets case, Jagan had applied for relief last week. The CBI informed the court on Monday that its investigation into the quid pro quo case is complete barring one aspect.

Earlier, a memo filed by the CBI before the court today rekindled hope in the Jagan camp that the young MP would be granted bail. The investigating agency, which has been stonewalling Jagan’s bail attempts, has so far filed 10 chargesheets in the case. In an interesting submission, the CBI told the court that it did not find any proof of quid pro quo in the investments of Sandur Power, Karmel Asia, PVP Business Ventures, Jubilee Media Communications, Classic Realty, Brahmani Infra Tech, R R Global, Saraswathi Power and Industries and Manthri Developers.

It also stated that the ambit of irregularities and violation of these rules by these companies are under the purview of departments like enforcement directorate, income tax and registrar of companies.

Regarding its investigation, the CBI said that the probe on the last aspect, pertaining to the deals of Indu Projects, was complete. It informed the court that a report would be submitted to the court to this effect very soon.