Chidambaram has sought interim bail in the INX media money laundering case on medical grounds, saying his condition is deteriorating and he needs to be in a sterile environment.
The 74-year-old Congress leader has been in custody since August 21, when he was arrested by the Central Bureau of Investigation in the INX-Media corruption case.
The Supreme Court on Wednesday granted bail to Chidambaram, a senior Congress leader, in the INX Media money laundering case registered by the Enforcement Directorate.
A bench headed by Justice R Banumathi rejected the review plea filed by the CBI saying the last year verdict does not suffer from any error apparent warranting its reconsideration.
Chidamabaram's counsel told the top court that he is sought by ED to be "vicariously involved" in the INX Media money laundering case as he is the father of Karti Chidambaram, who according to the probe agencies tried to influence the Foreign Investment Promotion Board members.
After questioning him for four hours in the morning, Chidambaram was taken to a special court in Delhi which sent him to CBI custody till Monday.
While no government notification or order appointing Gaur as chairman has been made public so far, sources in the know said the appointment has been cleared.
Grant of anticipatory bail to Chidambaram at this stage will hamper investigation, it said.
The Congress leader, who served as Union home minister during November 2008 to July 2012 in the United Progressive Alliance government, was one of the key guests at the inauguration event of CBI headquarters, held on June 30, 2011, in the presence of then Prime Minister Manmohan Singh.
Chidambaram and his son Karti Chidambaram were named in the chargesheet filed by the CBI in the case on July 19.
'This move rendered the chiefs of important investigative agencies to the status of daily wage earners. It undermined the autonomy and independence of the agencies.'
The Congress leader was first arrested by the CBI on August 21.
Special Judge O P Saini took strong objection to the agencies seeking repeated adjournments.
While posting the matter for hearing on Thursday, the bench said: "We are conscious that we should not usurp the jurisdiction of the concerned trial court".
He was produced before the court after the Supreme Court refused to entertain his plea challenging the Delhi high court order which had dismissed his anticipatory bail plea in the corruption case lodged by the CBI arising out of the INX Media scam.
Apart from INX Media and Aircel-Maxis, the four other firms which are under the scanner are Diageo Scotland, Essar Steel, Katara Holdings and Elforge Ltd. These firms were granted FIPB approval when Chidambaram was the FM, reports Shrimi Choudhary.
The Congress leader gave the statement when he was asked what he has to say after the court order.
'It's the court, not the government that decides where to put the people who indulge in corruption'
Chidambaram complained of illness and pain in the stomach, the sources said, adding that he was treated for gastrointestinal-related problems.
Karti and Mukerjea were brought face-to-face and questioned by the CBI team for about four hours.
Referring to the arguments advanced by Chidambaram's counsel on Tuesday that ED wanted to humiliate him by arresting him, Mehta had said, "A victim card is sought to be played. They are saying humiliation. It is not. It is prevention, prevention and prevention with capital P. I am serious about this".
"I will address a press conference tomorrow. I am happy that the Supreme Court passed the order granting bail," added Chidambaram.
A bench of Justices R Banumathi and A S Bopanna said it would hear the arguments of the Enforcement Directorate on Chidambaram's two petitions, including the challenge to remand orders, on Wednesday.
A bench headed by Chief Justice Ranjan Gogoi allowed his plea as Solicitor General Tushar Mehta, appearing for CBI and the Enforcement Directorate, did not oppose.
Since his arrest on August 21, he has till Tuesday spent 54 days in custody -- both of the CBI as well as judicial -- in nine spells.
During the hearing, the Central Bureau of Investigation told the court that it has already filed its reply in the case.
Special judge Ajay Kumar Kuhar was informed by the Enforcement Directorate that Chidambaram's arrest in the INX Media money laundering case is necessary but it will be done at an appropriate time.
The statements of the Mukerjeas were recorded by the Enforcement Directorate, which is probing the money laundering angle in the case, while the CBI had only recorded Indrani's statement before a magistrate as per section 164 of the CrPC, they said.
The Enforcement Directorate has registered a money laundering case against Karti Chidambaram, son of former finance minister P Chidambaram, and others, taking cognisance of a recent CBI FIR against them.
Justice Suresh Kait issued a notice to the CBI on Chidambaram's bail plea in which he has claimed that it was the case of 'political vendetta'.
The CBI suspects that Chidamabaram and his son Karti also received kickbacks from other companies.
The apex court's order came hours after the high court extended Chidambaram's protection from arrest in the ED case from March 20 to March 22.
The Central Bureau of Investigation on Friday told the Supreme Court that 15 accused, including Chidambaram, his son Karti and some companies have been chargesheeted in the case.
Justice Gaur was elevated to the high court in April 2008. He was designated as a permanent judge on April 11, 2012.
However, the bench said Chidambaram is at a liberty to seek remedy in accordance with the law.
On the arrest of P Chidambaram, Karti said, "This is like a staged reality show to have all these dramatic visuals on television. There is no reason for this kind of drama... It's not done in an honest investigation.
Chidambaram, who was closely monitoring the case of his son in the Supreme Court which was argued by his party colleague and senior advocate Kapil Sibal, had sprung a surprise last week by filing a petition on his own accusing the CBI and the Enforcement Directorate of carrying out a political vendetta against him and his family.
The opposition and the government are locking horns over the PNB and INX Media cases.
His answer to every question was, "I am politically victimised", the CBI said.
Apart from them, Chidambaram's wife -- Nalini -- has been chargesheeted by the CBI in the Saradha chit-fund scam for allegedly accepting a bribe of Rs 1.4 crore.