A court on Monday was set to pronounce orders on bail petitions of 25 students and two faculty members of University of Hyderabad as the public prosecutor did not file a counter to the bail plea.
A lawyer said the government had not opposed the bail, creating hopes that the students might get early bail.
The students and faculty members were arrested on March 22 during a police crackdown on those protesting the return of P. Appa Rao as the vice chancellor after a two-month leave.
A section of students want the sacking and arrest of Appa Rao, holding him responsible for the suicide of Dalit research scholar Rohith Vemula.
