Gandhi had expressed "regret" on Monday over his remarks in connection with the Rafale judgment and said in his affidavit that his statement was "purely political".
The SC termed the arrest as 'prima facie arbitrary'.
The apex court said it is not considering the Shiv Sena-NCP-Congress' combine's plea that they be invited to form government in Maharashtra.
The Congress president had on April 10 claimed that the apex court has made it "clear" that Prime Minister Narendra Modi "committed a theft".
The bench said it will take up the matter for hearing on Thursday.
The man's Indian citizenship was denied on the ground of discrepancy in the name of his grandfather.
The court also directed that police officers, who were earlier appointed as nodal officers to deal with incidents of mob lynching, would be now responsible to deal with cases of alleged assault on Kashmiris.
"We realised that we don't have the required numbers to form the government and we don't want to indulge in horse-trading," Fadnavis told reporters after announcing his decision.
The court struck down the portion of the Speaker's order by which the legislators were disqualified till the end of the 15th Karnataka assembly.
The apex court imposed a fine of Rs 1 lakh each on them for wilfully disobeying its order by transferring CBI joint Director A K Sharma who was probing the Bihar shelter home sexual assault cases.
The NHRC issued notice to the Union ministries of home and human resource development seeking a report over the reported ill-treatment of Kashmiri people in the aftermath of the attack.
'When it is an open ballot, the division taking place in the open house will be for all to see.' 'As they say sunlight is the best disinfectant, this (aspect of the order) brings in transparency and it's in keeping with the best democratic principles.'