Justice Vipin Sanghi ordered Chautala's release for three weeks without restraining his movement out of Delhi, and said that the relief is granted to "re-establish his ties with the society and the family members".
The court's order came on Chautala's petition seeking six months' parole to allow him "return to the mainstream".
The INLD leader, through his counsel Amit Sahni, has said that the Delhi government's December 14 decision denying him relief was passed in "an extremely unfair manner upon flimsy grounds".
He said he was on bail during the trial and was released on parole, but he has never misused the same.
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Chautala, his son Ajay Chautala and three others are serving 10-years jail term in the case.
The Supreme Court in August 2015 had dismissed Chautalas' appeals against the high court's verdict upholding their conviction and sentence of 10 years awarded by a trial court in the junior basic trained (JBT) teachers recruitment scam case.
The high court had on March 5, 2015 upheld the 10-year jail terms awarded to the two Chautalas and three others, saying, "The overwhelming evidence showed spine-chilling state of affairs in the country."