A bench comprising Chief Justice H L Dattu and justices Arun Mishra and Amitava Roy dismissed the plea of Telangana government's Anti Corruption Bureau seeking cancellation of the bail to Reddy and two co-accused, Bishop Harry Sebastian and R Uday Simha, by the High Court on June 30.
The high court had directed Reddy and the two others to furnish a personal bond of Rs 5 lakh each and two sureties of the like amount, besides asking them to cooperate with the investigating agency ACB.
Reddy was also asked to surrender his passport and not to leave his assembly constituency.
Earlier, the special court for ACB cases had rejected the bail pleas of Reddy and the two others. Subsequently, Reddy and the two other accused had moved the Andhra Pradesh high court on June 15 seeking bail.
Reddy had contended before the high court that it was a politically motivated case and he was being falsely implicated.
However, Telangana government had opposed the bail applications stating that the source of Rs 4.5 crore funds was yet to be ascertained and apprehended tampering of evidence.
The HC Judge, Justice Raja Elango, had earlier said that there was some material to register the case, but wondered why the police officers have not recorded reasons for arrest in writing as contemplated under the law, when the maximum sentence in this case is less than seven years.
Earlier, Telangana's nominated MLA Elvis Stephenson had lodged a complaint with ACB alleging that he was offered Rs 5 crore by the TDP MLA to vote in favour of a Telugu Desam member of Legislative Assembly nominee in Telangana legislative council polls held on June 1.
Subsequently, the ACB had arrested Revanth and the two others on May 31, while they were allegedly paying a bribe of Rs 50 lakh to Stephenson.
A war of words had broken out between the two states after the cash-for-vote case, with Naidu alleging that his phone was tapped, even as a total of 87 cases were registered by the AP police.
However, the Telangana government and ACB had denied tapping of the phones of Naidu and others.