The play named as "Dropati Cheer Haran" was staged by first year students of the IIT (Mandi) in a hotel during a fresher party.
The play was subsequently loaded on YouTube which was viewed by many persons.
The viewers alleged the script and dialogues of the play had hurt religious sentiments of the people and demanded action against the students and the Mandi IIT administration.
Sessions Judge Virender Singh granted interim bail to 12 first year IIT students who apologised before the court.
They also gave an undertaking to the court that they would not repeat such an act in future.
The IIT administration had imposed a token fine of Rs 2500 on each of them.
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Local advocate Sanjay Mandyal filed a criminal complaint before the SP, Mandi, and the police registered a case under various sections of the IPC and the Information Technology Act.
As the police launched investigation, 12 first year students of the IIT filed acticipatory bail applications in the court.
The court allowed the anticipatory bail to students till October 20 on furnishing bail bonds of Rs 20,000 each and directed the applicants to join the investigations and be present on next date of hearing.