Hearing the arguments from the petitioner's counsel and state government, the division bench of justices Indrajit Mohanti and Sangam Kumar Sahoo reserved the judgement.
Arrested by Cuttack city police in connection with an illegal kidney transplantation involving a Cuttack woman, N Prabhakar Babu, director of a private hospital, is now under judicial custody here since July 3.
Babu was taken under custody by the Cuttack police on June 17 this year.
His wife had sought the high court's intervention for immediate release of her ailing husband.
In its reply, state advocate general Ashok Mohanty on the day admitting that the state police had no authority to arrest the doctor under the provisions of Transplantation of Human Organs Act, stated that the accused was arrested under section 467, 471, 324 and 34 of IPC for he allegedly carried out the organ transplantation without following the guidelines issued in this context by the Supreme Court.