Air India and Spicejet too revoked the ban on the MP.
"The issue is amicably resolved and IndiGo has decided to lift the said ban with immediate effect. Mr Reddy is withdrawing the case he has filed," an IndiGo spokesperson said.
The move comes a day after the Hyderabad High Court issued "urgent notices" to several airlines, ministry of civil aviation, aviation regulator Directorate General of Civil Aviation (DGCA) on a petition filed by Reddy challenging the ban.
An Air India spokesperson said the airline has also decided to remove the ban.
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SpiceJet spokesperson said, "We have lifted the ban".
Jet Airways, Vistara, Air Asia and GoAir too had banned Reddy after the June 15 incident and they were also likely to review their decision in light of today's developments.
On June 15, Reddy got into a verbal spat with IndiGo ground staff at Visakhapatnam airport and threw a printer kept at the airline's counter after he was informed that boarding for his flight to Hyderabad had closed.