Ahmedabad/New Delhi: In a setback to the Gujarat government, a special court granted bail to suspended police officer Sanjiv Bhatt, who has accused Chief Minister Narendra Modi of complicity in the 2002 communal riots. Coming out of jail, the officer said rule of law has prevailed.

Sessions Judge V.K. Vyas granted bail on the condition that Bhatt would cooperate with the investigation and would be present when called.

"At 11am today [yesterday], the court pronounced the judgment and granted Sanjiv Bhatt bail," Bhatt's counsel I.H. Sayed told reporters in Ahmedabad.

The Indian Police Service officer was arrested on September 30 for allegedly forcing a police constable, K.D. Panth, to sign a false affidavit about his attending a meeting called by Modi soon after the Godhra train burning that sparked the riots.

Rose petals were showered on him and his supporters shouted slogans in his favour as he left the Sabarmati jail in Ahmedabad.

"I am happy that the rule of law has prevailed and this would be a victory for hope," a composed Bhatt told reporters outside the jail.