Jharkhand High Court on Thursday granted bail to former state Chief Minister Madhu Koda, who was in prison for over two years in connection with illegal investments and hawala transaction case.

Koda, who was in judicial custody since November 30, 2009, was granted bail by the single bench of H C Mishra.

Koda, who ruled the state between 2006 and 2008, was arrested by the officers of Jharkhand Vigilance Bureau from Chaibasa after the October 2009 countrywide raids by Income Tax and Enforcement Directorate in 69 premises.

The IT had alleged that documents relating to illegal investments and hawala transactions worth Rs 2,500 crore were seized during the premises of Koda and his alleged associates.

Later, CBI took over the case and along with the ED, charged him with making illegal investments and indulging in hawala transactions with others during his chief ministerial term for 23 months.

Koda was an Independent MLA and had led UPA government in Jharkhand. His alleged aides Binod Sinha, Vikas Sinha and three others are now in judicial custody in connection with the same case.