Judge M M Gandhi granted him bail for two weeks on a personal bond of Rs 10,000.
Barot had sought four-week bail to attend to his 82-year-old ailing father.
He has been in jail since his arrest by CBI in September 2012.
Sadiq Jamal, a youth from Bhavnagar, was killed in an encounter by Gujarat police in Naroda area in the city on January 13, 2003.
The genuineness of the encounter became an issue after a Mumbai-based former scribe, Ketan Tirodkar, filed affidavit before a court there that he was witness to Jamal's hand-over to Gujarat police by 'encounter specialist' officer Daya Nayak of Mumbai police a few days before the encounter.