The decision was taken by the board headed by Justice H C Mishra, paving the way for Sao's release on bail.
Registrar General Anil Kumar Choudhary and Principal Judge, District and Session Court Anant Vijay Singh were the other members of the board which was set up by the High Court to look into the invocation of CCA against Sao by the Hazaribagh administration earlier this month.
Sao has been in jail since his arrest August 21.
Subsequently both of them were arrested on different dates and remanded to judicial custody before Devi was released on bail in October this year.
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Sao was granted bail by the Principal District and Sessions Court, Hazaribagh before the CCA was invoked against him.
His wife raised the issue on December 16 in the ongoing Winter session of the Assembly and demanded revocation of the Act.