CBI judge M C Biradar, while imposing certain conditions, directed the accused, also including former minister Krishnaiah Setty, to furnish a personal bond of Rs 2 lakh each and surety of the like sum.
The court asked the accused to regularly appear before it on each date of hearing, not tamper with the prosecution witnesses, surrender their passports and not to leave the country without its permission.
The matter was adjourned to January 29 for hearing "before charge".
Yeddyurappa, his sons B Y Raghavendra, an MP, and B Y Vijayendra, son-in-law R N Sohan Kumar and Setty were present in the court on the summons issued by the court on Nov 16.
Observing that it was a fit case for extension of "this liberty" (bail), the court taking into consideration the status of the accused, stated "it could not gather that the accused would tamper with the prosecution witnesses or there was any possibility of their absconding".
The court also observed that the investigation was already over in the case.
Earlier, the court agreed with the contention of the Special Public Prosecutor that the interest of the state was important and proper conditions were required to be imposed on the accused if granted bail.