Pataliya was arrested by the Godhra Police in January 2018, nearly 16 years after being booked in connection with the incident in which 59 'karsevaks' were burnt alive in two coaches of the Sabarmati Express.
Yakub Pataliya, 63, was arrested from Godhra by a team of B Division police in the town after they received a tip-off that he was spotted in a locality on Tuesday, the official said.
A bench of Chief Justice D Y Chandrachud and Justice P S Narasimha, while granting them the relief took note of the time they have already served and the unlikelihood of their appeals being taken up for disposal anytime soon.
The Supreme Court on Monday dismissed the bail pleas of three convicts serving life term in the 2002 Godhra train burning case, which plunged Gujarat into one of the worst communal riots, terming it a "very serious incident".