They were arrested by the Lokayukta police in connection with Karnataka Industrial Areas Development Board (KIADB) land scam. The two had challenged the trial court order, which had rejected their bail plea. 

The two, who were arrested in September last week in connection with their involvement in KIADB land scam at Devanahalli have been granted conditional bail by Justice V Jagannathan. The appellants, who are facing charges of creating fake documents to claim compensation were granted conditional bail, wherein they have to submit a bond of Rs one lakh along with two surety.

The Court has also directed Santosh to appear before the City Lokayukta SP every Saturday and Wednesday before 5.30 pm. The Court which directed him to surrender his passport has directed him to take trial court permission if he has to go out of the City. The trial court had rejected the bail.

For Muninarayanappa, the Court taking considering his health has directed him to appear before the Lokayuykta twice every month.