Panigrahy was granted bail subject to the furnishing security of Rs five lakh and bail bond of Rs two lakh with two sureties.
The High Court directed Panigrahy to cooperate with the investigating agency and refrain from influencing any witnesses. It also asked the MLA not to issue any statements before the media.
Panigrahy is currently lodged in the Jharpada Special Jail in the State Capital. He was arrested by the Crime Branch on December 3 last year on charges of forgery, criminal conspiracy and other cyber offences.
The former BJD legislator allegedly collected money from people on behalf of Akash Kumar Pathak, son of former IFS officer Abhay Pathak, on the false promise of providing them jobs in Tata Company.