New Delhi/IBNS: K Kavitha, arrested in March over an alleged corruption and money laundering charge in connection with the Delhi liquor policy case, was released from jail on Tuesday evening, hours after the Supreme Court granted her conditional bail.

Videos and images showed BRS workers and supporters playing drums and bursting crackers as she stepped out of the prison complex.

Kavitha's brother and BRS working president KT Rama Rao was also present to receive her.

"We are fighters, we will fight it out legally and politically. They have only made the BRS and KCR's team unbreakable," K Kavitha said in her first comments after walking out of the jail.

Earlier in the day, the top court said the 46-year-old Bharat Rashtra Samithi (BRS) leader's custody was no longer required as both the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) have completed their probe against her.

"The appellant (Kavitha) is directed to be released forthwith on bail ... on furnishing bail bonds in the sum of ₹ 10 lakh in each of the cases," the bench said, allowing her appeals against the July 1 verdict of the Delhi High Court which had denied her bail in the two cases.

In a significant observation, which could have a significant impact on future hearings in the alleged Delhi liquor policy case, the Supreme Court even questioned ED and the CBI's "fairness" in their probe against opposition politicians and others in this matter.

A two-judge bench of Justices BR Gavai and KV Viswanathan observed the federal agencies could not rely only on statements made by former accused persons who have turned 'approver', or become prosecution witnesses.

"You have to be fair... a person who incriminates himself has been made a witness? You cannot pick and choose... What is this fairness?" the court asked.

This came after the prosecution challenged the bail plea by Bharat Rashtra Samithi leader K Kavitha, who was arrested by the ED in March in connection with the liquor policy case and the CBI the following month.

Arguing against Kavitha, Additional Solicitor General SV Raju had referred to "independent evidence" by former accused Bucchi Babu and Raghav Magunta Reddy, who transformed into government witnesses (and received pardons) in April last year and March this year, respectively.

However, senior advocate Mukul Rohatgi, appearing for Kavitha, pointed out that many of the same statements, by the same individuals, had been cited as "evidence" in related cases, particularly that involving Delhi Chief Minister Arvind Kejriwal, who was arrested in March, days after Kavitha.

"You say Kejriwal is kingpin... say (ex-Delhi Deputy Chief Minister Manish) Sisodia is kingpin... then say I (K Kavitha) am kingpin! There is no evidence apart from the approvers' tainted statements!"

At this point the court stepped in, observing approvers' statements needed to be backed up by direct evidence. "What is the material to show she was involved in the crime?" Justice Gavai asked Raju.

The top court's observation has been critical in the liquor policy case context, much of which, it appears, depends on statements by former accused-turned-approvers.

Mention of approvers' statements featured heavily in bail pleas filed by Kejriwal and Sisodia before the Supreme Court. Sisodia was granted bail by the top court earlier this month.

The court then noted that he had spent nearly 18 months in jail and there was no prospect of a trial anytime soon. To keep him in prison would be a "travesty of justice", the court said.

Kejriwal, who has also contested charges against him by noting the material is based on approvers' statements, remains in jail. He was given bail in the ED case but not yet in the CBI case.