Sujata Nikhalje, wife of underworld fugitive don Chhota Rajan, was granted bail by a special court in Mumbai on Wednesday.
She was asked to pay Rs 1 lakh bail amount along with the condition that she should not leave Mumbai city.
Nikhalje was arrested under Maharashtra Control of Organised Crime Act in 2005 and spent two years behind bars before being granted bail.
She had formed a construction company and used to convert slums into buildings under the Maharashtra government's slum rehabilitation scheme.
The police alleged that she used to threaten the slum dwellers to evict. The police also alleged that she used to threaten city builders in her husband's names and operate his gang activities.
Three accomplices of Rajan were arrested with her in 2005.
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