The court, which had reserved its orders last week, pronounced the same Monday.
Jagan, as the MP from Kadapa is popularly known, was arrested by the Central Bureau of Investigation (CBI) in May last year.
The court granted the bail on Rs.2 lakh personal bond and two sureties of equal amount.
The MP has also been asked not to leave Hyderabad and not to influence anybody connected with the case.
The court granted the bail a few days after the four month deadline set by the Supreme Court for the CBI to complete the investigations ended.
The CBI has so far filed 10 charge sheets in the case against Jagan, his aides, former state ministers, IAS officers, corporate entities and businessmen.
--IANS (Posted on 23-09-2013)