The Supreme Court on Thursday granted bail to former Tamil Nadu minister V Senthil Balaji, who was arrested by the Enforcement Directorate last year in connection with a money laundering case.

A bench of Justices Abhay S Oka and Augustine George Masih put onerous conditions while granting relief.

The top court had reserved its verdict on August 12 after hearing submissions of Solicitor General Tushar Mehta, representing the Enforcement Directorate (ED), and senior advocates Mukul Rohatagi and Sidharth Luthra, appearing for Balaji.

The high court, while dismissing Balaji's bail petition, had said if he is let out on bail in a case of this nature, it will send out a wrong signal and be against larger public interest.

It had said since the petitioner was in custody for more than eight months, it will be appropriate to direct the special court to dispose of the case within a time frame.

"Accordingly, there shall be a direction to the Principal Special Court, Chennai, to dispose of the case within a period of three months from the date of receipt of copy of this order," it had ordered.

The high court ordered that the trial shall be conducted on a day-to-day basis in accordance with the guidelines issued by the top court.

Balaji was arrested on June 14 last year by the ED in connection with a money laundering case linked to an alleged cash-for-jobs scam when he was the transport minister in an earlier AIADMK government.

The ED had on August 12 last year filed a 3,000-page charge sheet against Balaji.

On October 19, the high court had dismissed Balaji's earlier bail plea. A local court has also dismissed his bail petitions thrice.