Additional Chief Metropolitan Magistrate granted bail to Abraham on a surety of Rs 8,000.
He was arrested yesterday in connection with the case, filed in 2001.
According to police, a charge sheet was filed against Abraham in the case and when he failed to appear before the court, a non-bailable warrant was issued against him which was executed.
Abraham, a whistle-blower, had filed a complaint before the special Lokayukta court alleging irregularities in the Bangalore-Mysore Express Highway project and also seeking probe into illegal mining on the basis of Lokayukta report.
Three former chief ministers-- H D Deve Gowda, S M Krishna and B S Yeddyurappa-- were named as accused in the highway project case.