Justice D.K. Singh stayed Kumar's arrest while hearing his interim bail petition and demanded the case diary from the state police.
Kumar's lawyer Soni Srivastav, who filed bail petition, said that she pleaded before the court that the applicant was framed for allegedly demanding the bribe.
Kumar was suspended last month on the basis of Bihar Police chief Abhayanand's report to the home department recommending action against him.
Abhayanand ordered a probe against Kumar following a complaint by the liquor mafia in January.
It was the first time that a DIG-rank officer was suspended in Bihar for demanding a bribe.
Kumar is a member of the 1997 batch of the Jammu and Kashmir police cadre. He was earlier the senior superintendent of police in Patna.
According to the Chief Minister's Office, the government has decided to repatriate Kumar to his parent cadre.
Three people associated with him have been arrested. Police seized Rs.5 lakh from their houses.
The Bihar government started seizing properties of those involved in illegal liquor trade following the death of over 60 people, mostly poor, in the past two months.
--IANS (Posted on 22-03-2013)