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Somnath Zuwarkar, a former Congress minister and opposition legislator, was granted interim bail for a month, on health grounds, on Friday.
Zuwarkar, who resigned as chairman of the Goa State Co-operative Bank two days ago, was arrested on 17 May, in connection with a bank scam. After remanding him initially for five days, his remand was extended by seven days.
The court granted him interim bail after seeking a medical certificate that he would have to be shifted to Bombay for angiography.
C N Salkar, the bank's CEO and his accomplice, is still in police custody.
Another Congress legislator and former power minister Mauvin Godinho was, however, refused anticipatory bail by the district and sessions court. He has now moved the high court, claiming to be innocent and a victim of political revenge by the ruling Bharatiya Janata Party government.
Godinho was arrested and released after five days for his alleged involvement in a power rebate scam. But the police now want to arrest him in another scam connected with the power department.
T Nagrajan, a retired chief electrical engineer, was arrested on Thursday for allegedly conspiring with Godinho in the scam. He was Friday remanded to four days' police custody.
While Chief Minister Manohar Parrikar has welcomed the police action against the Congress legislators, the opposition party has approached Governor Mohammed Fazal, urging him to intervene, and describing the actions as 'state terrorism'.
In two memoranda, Rajya Sabha member Eduardo Faleiro and senior local leaders, including party president Nirmala Sawant and Congress legislature party leader Luizinho Faleiro have urged the governor to seek a detailed report from the chief minister, in the form of an affidavit.
In violation of the provisions of law, they alleged that Parrikar had given instructions to the police on investigation into a criminal case. Parrikar denied the charge, stating that he was only monitoring the situation.
EARLIER REPORTZuwarkar gets further remand, Godinho freed
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